Commodities downtrend points to global recession, analysts say

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PETALING JAYA: The fall in commodity prices lately has been viewed as a sign that a global recession, spurred by runaway inflationary pressures, is on the way.

This, according to JF Apex Securities head of research Lee Chung Cheng, could be an indicator that a recession is already taking shape in the developed markets in the EU and the US.

A recession in these markets is likely to spread to the developing markets in the rest of the world.

The International Monetary Fund (IMF) has warned that US hopes of avoiding recession will be “increasingly challenging” after its 2022 growth forecast was cut to 2.3% from 2.9% in late June on the back of data showing weaker consumer spending.

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