The World Bank has predicted that things might have to get worse before they get better for the mining sector.
According to the institution’s latest update, this is on the account of exporting emerging market and developing economies struggling to cope with lower prices for oil and other key commodities. In response to this trend, the bank has revised its 2016 global growth forecast to 2.4% from the already 2.9% forecast earlier this year, growth in the economies has been downgraded from 1.2% to 0.4%.
The World Bank explains that in spite of lower investment in new capacity and production cuts the market still remains oversupplied.
In the coming months, the institution foresees metal prices to decline by 15% in 2016.