The World Bank has released its latest Commodity Markets Outlook, predicting a continued decline in most commodity prices into 2025. This follows a period of exceptional growth between 2021 and mid-2022. According to the report, energy prices are projected to drop by 14% next year after an expected fall of 26% this year.
Ayhan Kose, Deputy Chief Economist of the World Bank Group and Director of the Prospects Group, commented on these trends: "Most commodity prices are forecast to decline in 2024 for the second consecutive year as global growth slows." The impact of slower growth is also anticipated to influence metals prices negatively.
The report highlights significant uncertainties that could affect future price developments. Kose stated: "Commodity markets face major risks over the coming year. Energy prices could rise sharply if the war in Ukraine intensifies or if there is a renewed tightening of oil production."
Despite these projections, food commodity prices may not follow this downward trend due to several factors impacting supply chains and production levels globally.
###