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The recent collapse in international commodity prices (June 2014 to February 2015) has both positive and negative implications for Asia-Pacific economies, depending upon net commodity-trade positions. Here the focus is on the impacts to net commodity-importing economies. In the short-run, these economies are likely to benefit from a downturn in commodity-prices. Major consequences include: higher disposable incomes, greater domestic demand, and faster economic growth. However, because commodity prices are highly volatile in the long-run, benefits from lower prices may in fact be transitory.

The recent collapse in international commodity prices (June 2014 to February 2015) has both positive and negative implications for Asia-Pacific economies, depending upon net commodity-trade positions. Here the focus is on the impacts to net commodity-importing economies. In the short-run, these economies are likely to benefit from a downturn in commodity-prices. Major consequences include: higher disposable incomes, greater domestic demand, and faster economic growth. However, because commodity prices are highly volatile in the long-run, benefits from lower prices may in fact be transitory.

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Trade, Investment and Innovation Division +66 2 288-1234 [email protected]