Commodities Rising

Last year’s sharp decline in global commodity prices posed a huge factor in the slowing economies in much of Latin America and the Caribbean. But rising commodity prices offer relief to many of the region’s big exporters. Although prices are lower than 2008, commodity prices have been on a steady rise since their lows at the beginning of 2009. Demand from China and the fall in the value of the dollar are driving the trend, experts say.

“China did a lot of buying early in the year when prices were much lower and now its purchases are waning,” says Joseph Y. Calhoun III, chief investment officer for Miami-based Alhambra Investment Management. Calhoun added that there is little reason to expect the dollar to rise significantly while the United States is running large fiscal deficits. So countries such as Brazil, which has seen its currency increase 40 percent against the dollar since the beginning of the year, should continue to see the money flow in.