Commodity Prices Remain High Despite China's Growth Slowdown

Despite China's economic growth slowing down to approximately 5%, commodity prices have remained resilient. Although commodity prices have come down from their peaks, they are still 50% higher than pre-pandemic levels. This can be attributed to supply constraints caused by the energy transition, underinvestment in fossil fuel capacity, and the impact of climate change. Global growth is expected to slow, but commodity prices are not expected to decrease sharply due to the limited supply relative to the demand for materials needed for the energy transition.