World Bank Confirms Economic Data Benefiting Argentina

The World Bank (WB) said on Tuesday that the prices of commodities such as oil, metals and agricultural products will remain near current levels throughout 2021., thanks to the rebound in the global economy and improved growth prospects. The agency estimated that energy prices will increase, on average, by more than a third from 2020 values, and that oil will be worth an average of $ 56 per barrel.

In the case of agricultural products, the decline in supply in South America and strong demand from China have provided a strong boost to prices from the end of 2020 and prices are expected to stabilize in 2022. This improves Argentina’s foreign exchange earnings estimates and central bank reserve recovery.

Likewise, he expects metal prices to rise 30 percent, while the value of agricultural products will rise nearly 14 percent, according to the semi-annual Commodity Market Outlook.. “So far, global growth has been higher than expected and vaccination campaigns are already underway; these trends have driven up commodity prices, ”the report adds.

The rebound in economic activity, as well as some specific supply factors, especially in the petroleum, copper and some basic food sectors, have caused almost all commodity prices to exceed levels before the pandemic. In the case of agricultural products, he expects prices to stabilize in 2022.

After hitting historically low levels during the health crisis, the World Bank expects the price of oil to average $ 60 per barrel in 2022.However, if pandemic containment measures fail, further decline in demand could put pressure on inventories.

In the case of metals, their prices are expected to fall partially from this year’s increases, with stimulus-driven growth losing momentum in 2022. However, the implementation of a major infrastructure program in the United States could help support the prices of metals, including aluminum, copper and iron ore.