Rio Tinto warns of macroeconomic risks to global demand for commodities

Rio Tinto warns of further risks to commodity demand as the global economy slows in its third-quarter production report.

Among the challenges, the mining company highlights the difficulties of the Chinese economy, amid the strict coronavirus control policy and the liquidity crisis in the real estate market.

A “policy-induced acceleration in infrastructure spending, car sales and exports” helped provide engines for growth in the third quarter, but “sluggish global demand poses downside risks to China’s strong exports as consumers remain cautious.” with the real estate market”, says Rio Tinto.

The company also says it expects the Federal Reserve (Fed) and the European Central Bank (ECB) to continue to raise interest rates to contain inflation, even as these regions show even greater signs of economic slowdown.

Source: CNN Brasil

You may also like