World Bank Sees Commodity Prices Dropping Amid Economic Slowdown

💡 The World Bank predicts commodity prices will decline in 2022 due to a slowdown in global economic growth.

The World Bank Group released its Commodity Markets Outlook for April 2022, predicting a decline in commodity prices due to a slowdown in global economic growth. The report highlights a shift in the global economy, with a slowdown in major economies such as the United States and the European Union.

Commodity Prices to Decline

The World Bank expects commodity prices to decline in 2022, driven by a slowdown in global economic growth. Global growth is projected to decelerate to 3.2% in 2022, down from 4.1% in 2021. The eurozone economy is expected to grow by 1.8% in 2022, a significant decline from the previous year's growth rate.

Energy Prices to Fall

Oil prices are expected to decline in the coming months, driven by a slowdown in global demand. The World Bank predicts that crude oil prices will average $73 per barrel in 2022, down from $74 in 2021. Natural gas prices are also expected to decline, averaging $4.1 per million British thermal units (MMBtu) in 2022, down from $4.3 in 2021.

Agricultural Prices to Decline

Food prices are expected to decline in 2022, driven by a slowdown in global demand. The World Bank predicts that corn prices will average $5.50 per bushel in 2022, down from $5.60 in 2021. Soybean prices are also expected to decline, averaging $11.50 per bushel in 2022, down from $12.00 in 2021.

What It Means for Investors