The developing economies are the laggards in helping to build the next commodity price cycle

John Robertson

PortfolioDirect

The developing economies are the laggards in helping to build the next commodity price cycle. The chart is based on the updated composite leading economic indicators published by the OECD. The positive growth impact of the USA and Europe is being offset by the slowdown in some of the major developing economies. These outcomes are partly the lagged effect of earlier periods of slow advanced economy growth. Better advanced economy growth should translate into stronger developing economy growth in due course. As usual, one group should feed off the other. However, each of the major developing economies faces peculiarly structural problems which need addressing at a domestic level. To Brazil, China and India can be added Russia and eastern Europe which are now facing their own threats to growth over the Ukraine crisis.


John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...

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