Heine Interviewed on Coronavirus and Metal Markets
Ambassador Jorge Heine , Research Professor at the Pardee School of Global Studies at Boston University, was interviewed for a lead story in the Latin America Advisor, the daily publication of the Inter-American Dialogue, for its March 11, 2020 issue. the story asked experts, including Heine, how metal price volatility triggered by the coronavirus pandemic would affect Latin America given its great dependence on metal exports (read full story here).
Heine was asked to comment on how the economic downturn in China expected because of the coronavirus would impact this market, given that China currently imports about half of the world’s metals. Excerpts from his response:
The coronavirus outbreak has had a severe impact on stock markets and on the price of metals. In combination with the tug-of-war between Russia and Saudi Arabia over oil production, the consequences for the world economy can be severe… With the main impact of the pandemic on China, where it originated, Latin American countries such as Brazil, Chile and Peru, whose number-one export market is China, are especially exposed, though Colombia not so much… Some projections indicate that first-quarter growth in China will be flat, and a mere 4 percent in 2020, the lowest since the 1970s. The good news is that in China the virus seems to have peaked… If this holds—and it’s a big if—the Chinese economy should be able to ramp up growth. The question then becomes whether there would be enough external demand to drive it.
Ambassador Jorge Heine is a Research Professor at the Pardee School of Global Studies at Boston University. He has served as ambassador of Chile to China ( 2014-2017), to India ( 2003-2007) and to South Africa ( 1994-1999), and as a Cabinet Minister in the Chilean Government. More on him here.