Economic Relationship between Oil Prices, Food Prices and the Nascent Global Economy Recovery
In this contemporary society, the global food structure relies on the system of transportation. This implies that in future, the price of fuels will escalate causing insecurity in this sector. Clearly, food will also be expensive hence generate a key threat in reviving the economy around the world. Economists assume that growth in economy will reduce the expenses of food and oil in society.
Evidently, food and oil have a connection which means that they can render an effect to the economy. This can happen either when their prices increase or reduce. As a result, this tends to be harmful to growth of economy across the globe. The modern methods in agriculture require machines that use oil to facilitate its production. For an economy to develop, it relies on food to facilitate a healthy lifestyle. The unpredictable prices in oil serve as a major peril that leads to unstable food prices worldwide.
The demand of oil at the market will increase its costs which will also make food to be expensive at the market. Since oil and food are products that rely on each other, this implies that they control the rise of economy across the globe. In this regard, donor states have motivated the upcoming countries to concentrate on production of cash crops. Equally, farmers should also produce staple food to enhance survival in society.
Experts reveal that the rise in energy costs will make clients to slow down the growth of the economy. Other factors that delay growth of economy recovery incorporate conflicts that occur at oil locations. For instance, France produced 55,000 barrel of oil on daily basis but they fail to supply because the region is prone to battles. Evidently, the economy is incurring progress in some areas of the world. However, the developing states still need to incorporate efforts to meet its goals in future.
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