While the slowdown in Asia could hurt global economic growth, corporate treasurers and consumers can take solace in one certainty: lower prices for key commodities.
According to Fortune -- Asia's top-performing economies have suffered in recent months as a slowdown in Europe and stalled growth in the United States hobbled key export markets. But there may be one silver-lining to Asia's hardship: prices for key commodities like oil and copper are likely to decline in coming months, helping the bottom line at many U.S. companies.
When the World Bank released its latest projection for the Asian economy late last month, it said that growth in China is expected to decline to 9.1% this year, down from 10.6% in 2010. Growth is expected to continue to fall, reaching 8.4% in 2012 and stay at that level for the next several years, the bank said.
"Because China has such a high demand for raw materials, when exports from China decline, that will be good news for U.S. companies," says Lei Chen, an economist at Wuhan University. "The growth rate in China is slowing down and that means we will be importing less commodities like oil, copper and iron ore. Prices will continue to come down."
By how much is still up for debate. …
Read more at http://finance.fortune.cnn.com/2011/12/14/commodities-asia/?iid=SF_F_LN
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