Page 29 - OF0620 Online_Neat

prices overall are expected to fall have escalated as countries announce longer-term changes. Transport costs
this year. A deceleration of economic trade restrictions, which include export may be higher due to additional
growth in China, which accounts for bans on certain commodities, and engage border-crossing requirements.
half of the global metal demand, in excess buying. Similarly, agricultural Higher trade costs in particular will
will weigh on industrial metal prices. commodity production, especially next affect agriculture and food commodities
Gold prices, on the other hand, have season, could be affected by disruptions and textiles. Decisions to stockpile
risen as buyers have sought safety to the trade and distribution of inputs certain commodities could affect
amid financial market turbulence. such as fertiliser, pesticides and labour. trade flows and have an effect on
Snags to supply chains have already global prices.
Agriculture and food markets affected the exports of perishable Commodity-dependent emerging
Agriculture prices are less tied to products, such as flowers, fruit and markets and developing economies
economic growth and have undergone vegetables, from some emerging will be among the most vulnerable
only minor declines over the first market and developing economies. to the economic impacts of the
months of the year, with the exception Despite well supplied markets, export pandemic. In addition to the health
of rubber that fell sharply, and of restrictions could hurt food security and human toll they face, and the
rice that rose due to worsening crop in importing countries. The World effects of the global economic
conditions and some trade restrictions. Bank has joined other organisations downturn, reduced demand for
Overall, global agricultural prices are in calling for collective action to keep exports and disruption of supply
expected to remain broadly stable in food trade flowing between countries. chains will take a toll on the
2020 as production levels and stock of economies of these countries.
most staple foods are at record highs. Economic impact of COVID-19
Most food markets are well supplied. The impact of the COVID-19 pandemic Article courtesy of
However, concerns about food security on commodity markets may result in www.worldbank.org.

June 2020 27