The commodity boom: Analysis and outlook

The rapid economic expansion of China and burgeoning Chinese demand for raw materials and food have triggered a boom in exports from Latin America and the Caribbean to China in recent years. Largely due to growing demand from China and other emerging economies, commodity prices (especially mineral and metal prices) have soared since the early 2000s. Both factors have contributed to growth in the commodity-exporting countries of the region (especially the South American countries). But they have also made these countries more dependent on the income generated by such exports, which poses several challenges. By contrast, the Central American economies and most Caribbean countries have, as net importers of primary goods, been hurt by rising commodity prices.

Related Subject(s): Economic and Social Development