WASHINGTON—Sharp rises in food and fertilizer prices caused by the war in Ukraine are creating the worst global food crisis since at least 2008, putting the lives and livelihood of 345 million people in immediate danger, the International Monetary Fund said Friday.
While the food shock is touching nations in various parts of the world, the worst impact is felt by 48 mostly low-income countries, many of which depend on imports from Ukraine and Russia. About half of these countries, such as Somalia, South Sudan and Yemen, are especially vulnerable due to existing severe economic challenges and weak institutions, IMF economists said in a new report.
Food insecurity has been rising since 2018 as severe weather events, regional conflicts and the Covid-19 pandemic disrupted food production and distribution and boosted their prices.
The situation deteriorated sharply following Russia’s invasion of Ukraine. Exports of food and fertilizer from the two nations plummeted, prompting some other countries to impose export restrictions. Together, the two countries account for 30% of globally traded wheat, 20% of corn and 75% of sunflower oil.
“The result is an unprecedented 345 million people whose lives and livelihoods are in immediate danger from acute food insecurity,” IMF economists led by Managing Director
Kristalina Georgieva
said in a new blog post. “Around the globe, more than 828 million people go to bed hungry every night.”
While food prices have eased since the resumption of grain exports from Ukraine, they still remain significantly above the pre-war levels. And the outlook remains uncertain for next year with the war disrupting agricultural and economic activities.
A destroyed grain silo after shelling in a Ukrainian village amid Russia’s invasion of Ukraine.
Photo:
dimitar dilkoff/Agence France-Presse/Getty Images
The IMF estimates the food shock adds nearly $9 billion to the food-related costs for the 48 affected countries, while $50 billion is needed to eradicate acute food insecurity in 2022.
The IMF’s executive board is expected to approve a new emergency financing window to address the food shock, making available billions of dollars over the next year to the most vulnerable countries.
The new program will be rolled out as the IMF and the World Bank prepare to host a meeting in Washington starting Oct. 10 to discuss the global economic slowdown and related issues. Among the topics to be discussed by finance officials and central bankers from around the world are high inflation, rising interest rates, increasing market turbulence and the effects of Russia’s invasion of Ukraine.
Many advanced economies face sharp deterioration in their economic prospects, but among the hardest-hit nations are emerging-market and developing economies that rely on increasingly costly imported fuel and commodities. Many of them also face worsening debt burdens amid rising global interest rates and currency depreciation.
Write to Yuka Hayashi at yuka.hayashi@wsj.com
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
WASHINGTON—Sharp rises in food and fertilizer prices caused by the war in Ukraine are creating the worst global food crisis since at least 2008, putting the lives and livelihood of 345 million people in immediate danger, the International Monetary Fund said Friday.
While the food shock is touching nations in various parts of the world, the worst impact is felt by 48 mostly low-income countries, many of which depend on imports from Ukraine and Russia. About half of these countries, such as Somalia, South Sudan and Yemen, are especially vulnerable due to existing severe economic challenges and weak institutions, IMF economists said in a new report.
Food insecurity has been rising since 2018 as severe weather events, regional conflicts and the Covid-19 pandemic disrupted food production and distribution and boosted their prices.
The situation deteriorated sharply following Russia’s invasion of Ukraine. Exports of food and fertilizer from the two nations plummeted, prompting some other countries to impose export restrictions. Together, the two countries account for 30% of globally traded wheat, 20% of corn and 75% of sunflower oil.
“The result is an unprecedented 345 million people whose lives and livelihoods are in immediate danger from acute food insecurity,” IMF economists led by Managing Director
Kristalina Georgieva
said in a new blog post. “Around the globe, more than 828 million people go to bed hungry every night.”
While food prices have eased since the resumption of grain exports from Ukraine, they still remain significantly above the pre-war levels. And the outlook remains uncertain for next year with the war disrupting agricultural and economic activities.
A destroyed grain silo after shelling in a Ukrainian village amid Russia’s invasion of Ukraine.
Photo:
dimitar dilkoff/Agence France-Presse/Getty Images
The IMF estimates the food shock adds nearly $9 billion to the food-related costs for the 48 affected countries, while $50 billion is needed to eradicate acute food insecurity in 2022.
The IMF’s executive board is expected to approve a new emergency financing window to address the food shock, making available billions of dollars over the next year to the most vulnerable countries.
The new program will be rolled out as the IMF and the World Bank prepare to host a meeting in Washington starting Oct. 10 to discuss the global economic slowdown and related issues. Among the topics to be discussed by finance officials and central bankers from around the world are high inflation, rising interest rates, increasing market turbulence and the effects of Russia’s invasion of Ukraine.
Many advanced economies face sharp deterioration in their economic prospects, but among the hardest-hit nations are emerging-market and developing economies that rely on increasingly costly imported fuel and commodities. Many of them also face worsening debt burdens amid rising global interest rates and currency depreciation.
Write to Yuka Hayashi at yuka.hayashi@wsj.com
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8