Indeed, most of the upward pressure on commodity prices over the past 10 years has come from the EMEs. These economies are expected to keep growing, barring any unforeseen shock. Does this mean another commodity super-cycle? It is tempting to look at recent developments and extrapolate into the future. China and India alone account for more than 40 per cent of the world’s population.
If these two economies continue to grow at annual rates of 8 to 10 per cent, as we have seen recently, they will soon overtake even the largest advanced economies, and their prospective demand for commodities could be enormous.