World Bank's Surprising Forecast: Commodity Prices on the Decline

The latest report published by the World Bank sheds light on the future of global commodity markets. The Bank's Commodity Markets Outlook Report for October predicts that commodity prices will decline to their lowest levels in the last six years by 2026.

This decline implies that commodity prices will decrease for the fourth consecutive year. In recent years, commodity markets have experienced significant fluctuations due to economic uncertainties and changing demand dynamics. However, the World Bank's new report paints a grim picture of how the prices of particularly oil, gold, and other essential commodities will shape in the future.

The report highlights that the slowdown in the global economy and low growth rates will increase the pressure on commodity prices. This situation could have serious consequences, particularly for developing countries, as many economies relying on commodity revenues may struggle with falling prices. World Bank analysts emphasize that this long-term downward trend in commodity prices could threaten economic stability, encompassing agricultural products and metal prices as well.

In particular, food prices and energy costs attract more attention during periods of economic uncertainty. Countries are expected to reassess their food security strategies and increase energy efficiency measures. Additionally, the report indicates that this decline in commodity prices may indirectly affect costs in major industrial and manufacturing sectors.

In conclusion, the World Bank's report serves as an important warning regarding the future of commodity markets. Businesses and investors must closely monitor these changing dynamics and adjust their strategies accordingly. Key factors that could impact commodity prices in the near term include geopolitical risks, climate change, and the post-pandemic recovery process. All these factors emerge as key elements shaping the trajectory of commodity markets.