There has been a remarkable fall in the prices of minerals extracted from the core of the earth’s surface. This unnerving change in the prices of commodities has left everyone in a state of shock and surprise.
The New Turn Of Events And Its Impact On Global Market
Death bells are believed to be ringing in the current year for commodity super cycle. The global market has been adversely affected by the current scenario. Be it metals such as gold, silver, aluminum, copper or oils, the steep fall in their prices has affected the country’s economy to a great extent.
A Great Help For The Developing Countries
Developing countries seemed to have gained a lot from this sudden decline in commodity prices. Commodity exports contribute a lot in improving a country’s economy. Developing countries often suffer immensely due to erratic or instability in the earnings derived from the export. With the decline in the prices of commodities, developing countries can benefit manifold.
The Reasons Behind The Price Decline
The world renowned economists consider some of the factors responsible for the current scenario of the prices of commodities in global market. First and foremost what must be taken into consideration is the fact that due to price hike in the commodities earlier, the demand was marked to be significantly deteriorating.
However, in spite of low demands, the amount of productivity remained unchanged which is the second most important reason responsible for the sudden changes in commodity prices. The prices of the commodities are expected to fall much more by the end of this year.