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“Drop In Rubber, Iron Ore Prices Key To Economic Inactivity,” CBL

29 March 2017, 10:22 am Written by  Prince S. Nagbe
Published in LINA Bulletin
Read 1763 times

MONROVIA, March 28 (LINA) - Decline in the global prices of rubber and iron ore has severely affected the economy of Liberia, a Central Bank of Liberia (CBL) 2016 Report has disclosed.

The two commodities are the country’s major foreign exchange earners.

According to the report, the average global price of rubber dropped significantly in 2014, but later rose by 3.0 percent to US$1,619.6 per metric ton from US$1,572.1 per metric ton in December 2015.

The CBL report also noted that like rubber, the price of iron ore, one of Liberia’s key export products, also experienced drastic decline as of 2014. Between 2014 and 2015, the price of iron ore declined by 43 percent, while from 2015 to 2016, it declined by 42.9 percent.

The report indicated that the slump in the price of iron ore for the past two years can be attributed to weak demand for the products, mainly from China and the increase in its supply on the global market.

The CBL in its report also noted that because iron ore, rubber and minerals are key to boosting revenue for the country’s economy, the development of its economy is often hedged on global prospects, and that changes in prices globally greatly impact revenue generation.

The CBL pointed out that moving away from the lag-effect of the Ebola Virus crisis in 2014, decline in commodity prices have had mixed effects on the Liberian economy as the price slump of iron ore and rubber in 2016 were cardinal in causing decline in export receipts.

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