Commodity
in sentence
920 examples of Commodity in a sentence
During China’s infrastructure boom, it was importing huge volumes of commodities, pushing up their prices and, in turn, growth in the world’s
commodity
exporters, including large emerging economies like Brazil.
But the US Federal Reserve’s move to increase interest rates, together with slowing growth (and, in turn, investment) in China and collapsing oil and
commodity
prices, has brought the capital inflow bonanza to a halt.
The
commodity
boom and discovery of mineral resources in fragile states have sown seeds of discord, while the spread of democracy in low-income countries – perhaps surprisingly – increases the statistical likelihood of political violence.
Sovereign finances weathered a wrenching global recession and a collapse in
commodity
prices surprisingly well over the past few years.
Gold prices started to rise sharply in the first half of 2008, when emerging markets were overheating,
commodity
prices were rising, and there was concern about rising inflation in high-growth emerging markets.
As concerns about deflation replaced fear of inflation, gold prices started to fall with the correction in
commodity
prices.
This was not the case in the 1970s, when stagnating productivity and rising
commodity
prices turned central bankers into scapegoats, not heroes.
Many low-income countries will suffer from the decline in
commodity
prices.
Their export earnings have plummeted – falling by half in many cases – forcing them to run deficits and draw on the large sovereign-wealth funds they accumulated during the global
commodity
boom.
Fifteen of the world’s 20 biggest trade fairs (measured by indoor exhibition space) are held in Germany, and the country tops the list in world
commodity
exports.
But countries like Argentina and Brazil fear Chinese retaliation aimed at their
commodity
exports.
A variety of factors are at work: concerns about a hard landing for the Chinese economy; worries that growth in the United States is faltering at a time when the Fed has begun raising interest rates; fears of escalating Saudi-Iranian conflict; and signs – most notably plummeting oil and
commodity
prices – of severe weakness in global demand.
At the same time, long-term interest rates have continued to come down in recent years; the value of the dollar has surged; gold and
commodity
prices have fallen sharply; and bitcoin was the worst performing currency of 2014-2015.
And now, following a massive decline in housing prices in countries that experienced a boom and bust, oil, energy and other
commodity
prices have collapsed.
Call this the fifth anomaly – the result of China’s slowdown, the surge in supplies of energy and industrial metals (following successful exploration and overinvestment in new capacity), and the strong dollar, which weakens
commodity
prices.
Other emerging markets’ growth prospects are even worse – not least because of low
commodity
prices.
Even though we have fertile land, water and hardworking people, somehow we have not managed to master the process of adding value to what we produce and have, as a consequence, been reduced to being at the whim of the world's unpredictable and capricious
commodity
markets.
Temporary
commodity
booms typically pull workers, capital, and land away from fledgling manufacturing sectors and production of other internationally traded goods.
The problem is not just that workers, capital, and land are sucked into the booming
commodity
sector.
Such countries evolve a hierarchical authoritarian society in which the only incentive is to compete for privileged access to
commodity
rents.
One is the trajectory of
commodity
export prices, which increased through the late 1930s and 1940s, following the Depression-era collapse.
With the
commodity
boom unlikely to return, Latin America urgently needs new export products – and here a bit of modern, if unorthodox, industrial policy could prove useful.
Its position in the world economy is marginal – tenuously plugged into global investment flows and dependent on northern markets for its
commodity
exports, tariff preferences, and financial aid.
In theory, at least, China’s rapid growth, if it continues, offers southern Africa a highly promising economic opportunity, not least by underpinning
commodity
prices and thus boosting southern Africa’s terms of trade.
It also demonstrated that oil is a fungible
commodity.
Rather than being regulated by a contract, the value of labor is being subjected to the same market forces buffeting any other commodity, as services vary in price depending on supply and demand.
And Russia, despite a very well educated population, continues to be reliant on
commodity
industries for economic growth.
For starters, the risk of a hard landing in China poses a serious threat to emerging Asia,
commodity
exporters around the world, and even advanced economies.
Another deep cause of current volatility is that the
commodity
super-cycle is over.
Meanwhile, emerging-market
commodity
exporters failed to take advantage of the windfall and implement market-oriented structural reforms in the last decade; on the contrary, many of them embraced state capitalism, giving too large a role to state-owned enterprises and banks.
Back
Next
Related words
Prices
Growth
Global
Countries
Economic
Which
Markets
Their
Economies
Other
Emerging
Demand
Rates
Exports
World
Trade
Price
Financial
Inflation
Rising