Discuss how pandemicaffect demand for commodities in your locality /village. Give a brief report on it
Answers
Explanation:
Learn how the World Bank Group is helping countries with COVID-19 (coronavirus). Find Out
Skip to Main Navigation
World Bank Group logo
Who We Are
This page in: EN dropdown
PRESS RELEASE APRIL 23, 2020
Most Commodity Prices to Drop in 2020 As Coronavirus Depresses Demand and Disrupts Supply
Despite ample supplies of agricultural commodities, trade and supply chain disruptions raise food security concerns.
WASHINGTON, April 23, 2020 – The global economic shock of the COVID-19 pandemic has driven most commodity prices down and is expected to result in substantially lower prices over 2020, the World Bank said in its April Commodity Markets Outlook.
Energy and metals commodities are the most affected by the sudden stop to economic activity and the serious global slowdown that is anticipated. Commodities associated with transportation, including oil, have experienced the steepest declines. Despite only moderate impact on the outlook for most agricultural commodities, supply chain disruptions and government steps to restrict exports or stockpile commodities raise concerns that food security may be at risk in places, the report says.
“In addition to the devastating human toll, the economic impact of the pandemic will dampen demand and cause supply disruptions, negatively affecting developing countries that rely heavily on commodities,” said Ceyla Pazarbasioglu, World Bank Group Vice President for Equitable Growth, Finance & Institutions. “Policymakers can take advantage of lower oil prices by undertaking energy-subsidy reforms to help free spending for urgent pandemic-related purposes. These reforms need to be complemented with stronger social safety nets to protect the most vulnerable segments of society. Policymakers must resist the urge to impose trade restrictions and actions that put food security at risk, as the poor would be hit the hardest.”