This is not to deny the continuing importance of the major industrial economies, or the potential feedback effects of slower growth in the major
economies on commodity prices.
Not exact matches
Slowed growth in China has also had an impact
on the
commodity prices Canada's
economy heavily relies
on.
«We do not see an imminent turning point in
commodity prices and thus forecast further negative repercussions
on the Canadian
economy next year,» Sebastien Lavoie, assistant chief economist at Laurentian Bank Securities in Montreal, said in an analysis of the Bank of Canada's latest policy statement.
The impact of disappointing
commodity prices on the wider Perth
economy has become clear this week with a key annual conference postponed due to low numbers.
«They helped cushion the blow
on the
economy from the
commodity -
price shock, which is of course better than reacting after the fact,» Poloz said Wednesday.
That period of reflection appears to have emboldened Poloz's conviction in the story he's been telling from the start: that international sales of manufactured goods and services would lead a rotation away from the
economy's reliance
on high
commodity prices and consumption by heavily indebted households.
Given the collapse in oil
prices, and declines in some other key non-energy
commodities, the
economy is now operating
on two distinct growth tracks: the resource track and the non-resource track.
Among other things, my track record
on predicting rising oil
prices demonstrated that the traditional laws of supply and demand were no longer working for one of the
economy's most basic and essential
commodities.
From nickel to soybean oil, plywood to sugar, global
commodity prices have been
on a steady decline as the world's
economy has lost momentum.
Substantial changes in
commodity prices present important policy issues, both for macroeconomic policies working
on the demand side of the
economy, and for structural policies that work
on the supply side.
Following a January rally, the global
commodities complex underwent declines in February before partially recovering in March; for the first quarter as a whole, the benchmark Thomson Reuters CoreCommodity CRB Index (CRB) gained 0.8 %
on a
price - only basis.1 Among the 19 component
commodities tracked by the CRB, advancers had a slight edge over decliners, buoyed by growth in global
economies and weakness in the trade - weighted US dollar, which retreated 2.1 %, according to the Federal Reserve's (Fed's) US Dollar Index.1 Aside from robust gains for a host of agricultural products, oil and gold were also among the
commodity winners.
On balance, the overall impact on the global economy of lower commodity prices is likely to be positiv
On balance, the overall impact
on the global economy of lower commodity prices is likely to be positiv
on the global
economy of lower
commodity prices is likely to be positive.
The second cyclical factor that has had a major impact
on our exports and business investment is the protracted recovery of the US
economy — the slowest in the postwar period.10 When oil and other
commodity prices rose in the years before the 2014 oil
price shock, so did our dollar, making our non-
commodity exports to the United States less competitive and reinforcing the ongoing shift from manufacturing to services.
Many of the EM
economies were also very dependent
on commodity exports, and the collapse of
commodity prices will depress incomes in these
economies.
The Chinese
economy is slowing (worryingly, opinion differs as to how much), maintaining downward pressure
on commodity prices, while Chinese stock
prices continued to tumble in August in spite of huge intervention by the authorities.
Tax cuts always effect assets
prices, regulations are estimated to account for up to 35 % of building new construction costs for homes in some locations and though federal deregulation may not impact local regulations as much it does have a multiplier effect
on the
economy just like a tax cut does and anticipation of an infrastructure plan the scale of this administration's, though it hasn't been passed, would also have an anticipatory effect
on leading indicators like stocks and other
commodities that raise costs, which we have already seen.
Sharply lower
commodity prices are now offering Canada an opportunity to push the reset button
on an
economy that's become distorted by an overdependence
on resource markets.
The distribution of these real income gains across the
economy depends, crucially,
on how much the exchange rate appreciates in response to the positive shock to world
commodity prices (RBA 2005).
Commodity prices were
on fire
on Thursday morning, still soaring after comments by Treasury Secretary Steve Mnuchin that the weak dollar was good for the U.S.
economy.
Half of the country's 2014 exports were raw products like oil, iron ore, soybean and corn, so the
economy has been vulnerable to
commodity price changes
on those products.
Alberta's
economy is over-dependent
on a single
commodity, at a single
price and in a single market.
I have been nibbling
on this stock for the past few months as it too had a difficult 2015 with falling
commodity prices hurting ethanol sales, along with a strong dollar and weakened overseas
economies reducing demand for ADM products.
Looking forward, expansion in production capacity for some resource
commodities, stronger
commodity prices and the improvement in the global
economy should provide a further boost to export earnings over the coming year (see section
on commodity prices and the terms of trade).
The main contributors remain the same: declining oil and
commodity prices, renewed concerns over the pace of expansion in China, and the impact of rising interest rates and a strong dollar
on the U.S.
economy.
Chinese growth continues to slow, keeping pressure
on commodity prices and sending deflationary impulses throughout the global
economy.
Last year, when load - shedding reached its peak over a three - year period, the
economy recorded its lowest growth in 15 years: expanding by 3.9 percent mainly,
on due to a slump in
commodities prices and energy supply deficit, which affected the manufacturing, industries and services sectors... the biggest contributors to the country's GDP.
The Ghanaian
economy is built largely
on the back of
commodity exports, which saw a boom through 2011, but has tracked the fall in
commodity prices.
Government is hopeful that this year economic activities will rebound with a projected real GDP growth of 5.4 percent — despite the International Monetary Fund, which is helping in management of the
economy under a three - year Extended Credit Facility programme, lowering Ghana's economic growth in 2016 to 4.5 percent as a result of the continued fall in
prices of
commodities on the world market.http: / / ghanapoliticsonline.com
As Latin America comes down from a decade of growth based
on exporting
commodities at high world
prices, it faces the next challenge: transitioning to a higher - productivity
economy.
Russian sanctions over Ukraine have put pressure
on the
economy, while elections in Brazil and lower
commodity prices have hurt that country.
His predictions centre
on the fact that as a net - exporter of oil, Canada's
economy has been hit hard by falling
commodity prices.
Often used to gauge potential inflationary pressure
on the
economy,
commodities are susceptible to sudden
price movements that may present trading opportunities.
Chinese growth continues to slow, keeping pressure
on commodity prices and sending deflationary impulses throughout the global
economy.
As the
prices of
commodities have such broad - reaching effects
on the
economy, an investor can take advantage of changes in
commodity prices in several ways.
Further,
commodities have been increasingly influenced by Chinese trading and consumption, which means that their
prices could similarly depend
on the country's rebounding
economy and could move lower before going higher.
In many cases, their
economies can be heavily dependent
on the
prices for
commodities exports.
As I mentioned
on another answer, I think buying gold or other
commodity instruments is a poor choice here because the Australian
economy and the AUD is so tied to those
prices already.
On the one hand, the return on investment is much different than with stocks or bonds and the fluctuation of commodity prices can be affected by things like supply and demand, inflation, and the condition of the economy as a whol
On the one hand, the return
on investment is much different than with stocks or bonds and the fluctuation of commodity prices can be affected by things like supply and demand, inflation, and the condition of the economy as a whol
on investment is much different than with stocks or bonds and the fluctuation of
commodity prices can be affected by things like supply and demand, inflation, and the condition of the
economy as a whole.
Consequently, as it relates to valuation, companies in the materials sector are often dependent
on the
price movement of a macro variable of either the
price of the underlying
commodity, or the health of the underlying
economy.
«What the
commodity markets are telling us is that we're living in a finite world, in which the rapid growth of emerging
economies is placing pressure
on limited supplies of raw materials, pushing up their
prices....
And
on all other timescales, the
price of energy
commodities is driven by many factors, such as speculation about the political situation in oil producing
economies.