NewsNorth AfricaWorld commodity prices to remain stable in 2013 - Report


Posted on Tuesday, 30 April 2013 16:07

World commodity prices to remain stable in 2013 - Report

By Lawrence Quartey

Photo©ReutersCommodity prices globally drifted down for the most part of 2012 and are expected to remain stable this year, according to the 2013 Global Monitoring Report (GMR).


The report says the expected stability in prices will provide room for a flexible implementation of monetary policy, particularly in emerging market and developing countries.

Vandana Chandra, a member of the GMR team and a senior economist of the World Bank, launched the 2013 report in Accra, Ghana's capital, on Monday on the theme: "Rural-urban disparities in development and ways urbanization can better help achieve the MDGs."

The GMR is an annual report by the World Bank and the International Monetary Fund on progress towards the Millennium Development Goals (MDGs).

The global economy, the report says will see some recovery but at a gradual pace while in advanced countries the recovery will remain bumpy and involve downside risks.

The report identifies adjustment fatigue in advanced economies and over-investment and high asset prices in emerging market as some of the important short-and medium-term down-side risks that remain.

It says a broadly appropriate current policy stance in emerging market and developing countries is supporting continued strong growth in these countries.

If the downside risk of a protracted global slowdown extended through 2015, the report notes that it will have a significantly negative impact on growth in low-income countries and their ability to attain the MDGs.

It also notes that despite sustained economic growth, progress in rebuilding policy buffers in low-income countries has been modest.

The GMR team believes if the forces of urbanisation are not well managed, it would derail the MDGs' achievements made so far by countries.

Urbanisation aids to pull people out of poverty and advances progress towards the MDGs, so the report said if left unmanaged, it will lead to slum growth, which can overwhelm city growth and exacerbate urban poverty.

Shashidhara Kolavali, director of the International Food Policy Research Institute, said in Africa urbanisation was taking place without economic transformation, which he said needed particular attention in order to achieve the MDGs.

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