Some 50 developing countries remain at risk through 2009 as a result of food and energy price increases, according to an updated assessment from the International Monetary Fund.
While the international community is currently focused on the ongoing financial crisis in advanced economies, "it is important not to lose sight of 'other crisis' -- the continued debilitating impact of food and fuel hikes on some of the world's poorest countries," IMF Managing Director Dominique Strauss-Kahn said Wednesday in a statement.
"While food and fuel prices have eased somewhat in recent months," he said, "they remain well above their levels at the onset of the recent price surges."
"What this means for a large number of countries -- particularly in Africa -- is a significant shock," Strauss-Kahn said.
He called for "bolder action" from the international community in terms of additional aid to help vulnerable countries.
Updating an assessment made in June, the IMF said that as of mid-September, oil prices were at some 40 percent below their mid-July peaks, but still double the levels recorded at year-end 2006.
Similarly, food prices have eased 8 percent from their June peak but are still above year-end 2006 levels.
As a result, the IMF projects that net fuel-importing low-income countries are facing an increase in their fuel bill equivalent to 3.2 percent of their gross domestic product (GDP), or 60 billion dollars.
For 43 net food-importing countries, the IMF said, the rise in the food bill is 0.8 percent of GDP, or 7.2 billion dollars.
These conditions are causing a weakening in poor countries' balance-of-payments positions, national budgets and rising inflation, said Strauss-Kahn, a former French foreign minister.
In view of the dire situation poor countries face, richer countries must do more to help them, he noted.
He appealed to donor countries to do more by providing grants to low-income countries.
Source:Xinhua
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