BY MARTIN HUTCHINSON, Contributing Editor, Money Morning
If you read the newly released United Nations report on global population trends, you can reach only one conclusion about the long-term outlook for global commodity prices.
They're going higher.
Much higher.
In its report, "2010 Revision of World Population Prospects," published May 3, the UN now estimates that the global population will reach 9.3 billion in 2050, which is an increase of 150 million from the 9.15 billion it projected in its 2008 forecast.
Nor is that the only revision the UN made to its 2008 forecast. Instead of peaking in 2070, as it had previously predicted, the UN now says the world population won't peak until after 2100, when it will reach 10.1 billion - 44% higher than it is today.
The key takeaway: Given this expectation for worldwide population growth, it's clear that the rise in global resources prices we've seen since 2002 is for real, and is likely to continue for the long term.
The effect on global commodity prices will be clear - and dramatic. Oil prices, metals prices and - above all - food prices are likely to be much higher in 2050 (in terms of that era's overall purchasing power) than they are today. BY MARTIN HUTCHINSON, Contributing Editor, Money Morning
If you read the newly released United Nations report on global population trends, you can reach only one conclusion about the long-term outlook for global commodity prices.
They're going higher.
Much higher.
In its report, "2010 Revision of World Population Prospects," published May 3, the UN now estimates that the global population will reach 9.3 billion in 2050, which is an increase of 150 million from the 9.15 billion it projected in its 2008 forecast.
Nor is that the only revision the UN made to its 2008 forecast. Instead of peaking in 2070, as it had previously predicted, the UN now says the world population won't peak until after 2100, when it will reach 10.1 billion - 44% higher than it is today.
The key takeaway: Given this expectation for worldwide population growth, it's clear that the rise in global resources prices we've seen since 2002 is for real, and is likely to continue for the long term.
The effect on global commodity prices will be clear - and dramatic. Oil prices, metals prices and - above all - food prices are likely to be much higher in 2050 (in terms of that era's overall purchasing power) than they are today.
For full article:
No comments:
Post a Comment