IMF Chief: High Cost of Food Imports to Add $9Bln to Balance of Payment Pressure

WASHINGTON (Sputnik) - The International Monetary Fund (IMF) estimates the impact of higher import costs for food for developing countries at $9 billion shortfall on their balance of payment in 2022-2023, IMF Managing Director Kristalina Georgieva said on Monday.

"We took specifically to heart the issue of food. Why? Because you die when food is not available. This is not a trivial question. And we identified about $9 billion shortfall in terms of balance of payment coverage for this only, and now we are looking, of course, into the impact of energy on developing countries," she said during a joint discussion with World Bank head David Malpass.

She added that recession threatens countries that together account for one-third of global GDP, and global losses from the economic slowdown will reach $4 trillion by 2026.

"What the world needs is somewhere between $3 trillion and $6 trillion; we are not even close to this number," she added.

The IMF has repeatedly stressed that the global economic slowdown has intensified in recent months and some countries will face a recession next year. The conflict in Ukraine, supply chain disruptions, issues pertaining to gas and oil supply from Russia to Europe, continuing COVID-19 lockdowns in China and other problems are all affecting economic activity worldwide, the organization added.