The international Monetary Fund (IMF) has stated that many developing economies, including that of Nigeria and many African countries are facing inflation, debt and food crisis which could trigger collapse.
The IMF also stated that most countries on the continent could raise money from the global financial markets and do not have large domestic markets to turn to.
Managing Director of the IMF, Kristalina Georgieva disclosed this in a report titled, ‘Facing a Darkening Economic Outlook: How the G20 Can Respond.’
The IMF chief stated that as an immediate step, countries must reverse recently imposed restrictions on food exports, noting that such restrictions are both harmful and ineffective in stabilising domestic prices.
“Further measures are also needed to strengthen supply chains and to help vulnerable countries adapt food production to cope with climate change.
“The particularly difficult conditions in many African countries at this moment are important to consider. In my meeting with Ministers of Finance and Central Bank Governors from the continent this week, many highlighted how the effects of this, entirely exogenous, the shock was pushing their economies to the brink,” she said.
Georgieva added that the effect of higher food prices is being felt acutely as food accounts for a higher share of income. Inflation, fiscal, debt and balance of payments pressures are all intensifying.
“Most are now completely shut out from global financial markets, and unlike other regions don’t have large domestic markets to turn to. Against this backdrop, they are calling on the international community to come up with bold measures to support their people.”
