Rio Tinto Ltd
(ASX:RIO) believes predicted global and Chinese growth in 2010 will boost metal and mineral prices.
In its annual report released today, the mining giant reveals global growth forecasts for the year are for nearly 4%, with China’s gross domestic product tipped to increase by 9 to 10%.
The company says economy-wide inventory rebuilding in the Organisation for Economic Cooperation and Development should accelerate growth, which would have a positive impact on metals and minerals markets.
But the miner says it is still unclear whether a sustainable recovery in private sector confidence and economic activity will emerge when government’s cut back stimulus packages.
Risks include the possibility of a tightening of monetary policies in Asian economies in response to inflation.
The company says there are likely to be negative and positive swings in market sentiment throughout the year, which will affect commodity prices.
Rio Tinto reported a profit of $5.432 billion for calendar 2009.
