Among commodity countries, which countries made profit from commodity price hike?
Actually in some commodity countries getting less income despite commodity price hike due to recent strength of their commodity currencies.
For example according to the latest ANZ Commodities prices index shows the recent strength of the New Zealand dollar means their exporters have been unable to enjoy a 6.5 per cent increase in world commodity prices during May
Answers
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thinker70 answered 6 months ago …
This is a complex situation with no easy answers that will hold up in all situations. Australia, Canada and Brazil would be 3 prime examples of countries with very HIGH reliance on commodities, (agriculture, mining and oil in particular) to finance their economies The interaction between currencies, supply and demand for any commodity all impact on how well any given countries economy will perform at a given time!
For an example pertinent to Canada, the drop in the price of oil from a peak of $147. to as low as $30. destroyed thousands of high paying jobs in the oil sands, DELAYED many projects and even cancelled some and left the existing operations temporarily unprofitable. As a consequence, when DEMAND inevitably ramps higher the SUPPLY will simply not be there as drilling for oil and even prospecting has fallen back badly. The RESULT, another surge in prices, at least until supply catches up to increased demand.
