Commodities set to rise, economist

Commodity prices may continue to rise in 2010 as the global recession recedes, according to a prominent economist.

Commodity prices may continue to rise in 2010 as the global recession recedes, the economist credited with predicting the global financial crisis said yesterday.

Speaking at the opening of the Diggers and Dealers conference in Kalgoorlie, Nouriel Roubini said that he expects the world economy to improve next year and commodity prices to follow.

“As the global economy goes toward growth as opposed to a recession you are going to see further increases in commodity prices, especially next year,” Nouriel Roubini said.

“There is now potentially light at the end of the tunnel.”

According to Roubini, the continued growth of China, Australia’s largest commodities customer, is key to an economic recovery.

Roubini said that China is likely to meet its target of 8% growth in gross domestic product this year.

“That recovery will continue slowly, slowly over time,” he said.

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