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Rise
in metals prices not speculative, says IMF
Washington, USA: The phenomenal rise in the prices
of commodity metals, from aluminium to zinc, are not fuelled
by speculators but are a result of buoyant demand resulting
from a booming global growth, the International Monetary
Fund has said through its twice-yearly World Economic
Outlook.
According
to the IMF analysis, there was no support to the popular
perception that speculators have lain behind much of the
surge in commodity prices since the beginning of the decade.
The Fund also predicted that metals prices — which
have climbed by 180 per cent in real terms since 2002
—
will retreat from their recent highs, as substantial increases
in supply of key metals become available. With new sources
being exploited, there would likely be drop in prices.
The
IMF estimated that inspite of strong future demand, especially
from China, the real annual average price of aluminium
will drop from present levels by 25 per cent by 2010,
while the price of copper would drop by 57 per cent.
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EU
forecasts better euro zone economic growth for 2006
Brussels, Belgium: The European Union has raised
its growth forecast for the euro zone to 2.5 per cent
this year, saying it now expects the 12 nations that use
the currency to see their fastest economic expansion since
2000.
The
euro area grew by 1.4 per cent in 2005, and the EU has
previously forecast growth of 2.1 per cent this year.
According to the EU economic and monetary affairs commissioner
Joaquin Almunia, the final figure may be even better.
The EU said it may also have to raise its forecast for
2007 as the momentum should carry over into next year
unless global growth slowed. The commission said that
strong domestic demand, particularly private investment,
is the main driver of the EU recovery, as the economy
adds jobs while keeping inflation in check despite a massive
rise in oil prices.
Officials
also said that the economy of the whole 25-nation EU would
grow by 2.7 per cent in 2006, a sharp rise from 1.6 per
cent last year.
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