01.12.2008 - Extent of commodity prices collapse is the big unknown
From Theaustralian.news.com.au: The government's biggest concern about the economy is that commodity prices will fall further and faster than expected. The run-up in commodity prices has been so dramatic over the last five years that there is little precedent to guide forecasters about how big the reversal in prices might be. Treasury's budget update last month tipped that the terms of trade (the ratio of export prices to import prices) would show a rise of 10.75 per cent this year, reflecting the boom-time iron ore and coal contracts won last April. It forecast a partial reversal of 8.5 per cent in 2009-10..... Full Article: Source
Print