HARARE, January 26 (The Source) – The World Bank has forecast strong gains for metals and commodities in 2017 due to tightening supply and strengthening demand, which could boost African economies that rely on raw commodity exports.
In its January 2017 Commodity Markets Outlook, the World Bank said metal prices will likely be higher because of strong demand from China and advanced economies.
“Prices for most commodities appear to have bottomed out last year and are on track to climb in 2017,” said John Baffes, Senior Economist and lead author of the report.
“However, changes in policies could alter this path.”
Agriculture prices as a whole are expected to rise by less than 1 percent in 2017. Small increases are anticipated for oils and oilseeds and raw materials, but grains prices are forecast to drop almost 3 percent on an improved supply outlook.
Precious metals prices are seen declining seven percent as benchmark interest rates rise and safe-haven buying slows.