Commodity price slump affects emerging economies
Crude was up, as were copper, gold, accompanied by foodgrains, metals and energy. All of them hit fresh highs thanks to growing Asian demand—from China and India in particular. Amongst the other contributory factors were bigger emerging economy disposable incomes, plus (relatively) stronger OECD growth.
That momentum lasted until the July of this year, meaning that raw material producers never had it so good for almost eight full years. Exporters like Chile, Peru, Brazil, Kazakhstan and Russia saw the waxing of their hard-currency reserves, accompanied by currency appreciation. Some—like Brazil—even went ahead to retire international debt.
But there is a difference now. Not only has the current price slump marshaled together traditional commodity exporters like Australia, Brazil, Russia and South Africa. It has also pitted their interests
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