09.04.2014 - China’s changing commodities demand
Following three decades of rapid growth in China of about 10 percent a year on average, the recent slowdown has raised many concerns. Among them are the implications for global commodity markets: China’s demand rebalancing may lead to lower commodity consumption and prices and thus create adverse spillovers to commodity exporters. The analysis finds that China’s commodity consumption is unlikely to have peaked at current levels of income per capita. Moreover, the pattern of its commodity consumption closely follows the earlier paths of other rapidly growing Asian economies. However, recent shifts in the composition of China’s commodity consumption are consistent with nascent signs of demand rebalancing—private durable consumption has started to pick up, while infrastructure investment has slowed...............................................Full Article: Source
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