An economic report has shown that global commodity prices have experienced declines during H1’2017, contrary to expectations of a recovery.
Most commodities lost in H1’2017, namely energy, metals and minerals and agriculture, whose prices have declined by 6.0, 1.8 and 0.2 percent YTD respectively according to the World Bank Commodity Prices Index.
Oil prices have also declined by 5.2 percent YTD to USD 49.9 per barrel from USD 52.6 per barrel, owing to oversupply from the US shale oil market and African countries such as Nigeria and Libya.
The decline in commodity prices is set to take a toll on economic growth of commodity-driven economies.
Oil importing countries such as Kenya are likely to benefit from this with lower local prices and improvements in their current account balances.