Poorer nations may face more severe food and oil crises!

Poorer nations may face more severe food and oil crises!
Jul 2, 2008 04:54
KATRINA Points: Join Date: Nov 29, 2004 Status: offline	Yesterday, IMF warned that about 75 countries might be weakened by the rising food and oil prices. Indonesia and Pakistan are both included in the 75 countries. It also said that if the agriculture comodity prices keep rising, even if the oil prices are stable, some countries may fail to feed its people as well as maintain its economy growth. As for the price of soybean, it has increased by 45 percent since January this year. According to IMF, some nations have taken some measures, extending food and fuel subsidies and cutting the import duties on the agriculture comdities. These might weaken the impact of food and oil crises but the governments have to spend more fiscal resources. Source: FT.

Jul 2, 2008 04:54

KATRINA
Points:
Join Date: Nov 29, 2004
Status: offline

Yesterday, IMF warned that about 75 countries might be weakened by the rising food and oil prices. Indonesia and Pakistan are both included in the 75 countries. It also said that if the agriculture comodity prices keep rising, even if the oil prices are stable, some countries may fail to feed its people as well as maintain its economy growth. As for the price of soybean, it has increased by 45 percent since January this year.

According to IMF, some nations have taken some measures, extending food and fuel subsidies and cutting the import duties on the agriculture comdities. These might weaken the impact of food and oil crises but the governments have to spend more fiscal resources.

Source: FT.

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