Friday, 09 June 2023 01:30 GMT

IMF asks for food, energy subsidies as international crisis approaches

(MENAFN) As global recession worries mount, governments throughout globally must compensate the cost of food and energy "in a much-targeted manner, preferably by providing subsidies directly to people," according to the International Monetary Fund.

Kristalina Georgieva stated that the impoverished strata of society have been suffering owing to inflation and the high cost of living, and that while many governments have granted some type of assistance through programs and other arrangements, it may not be sufficient.

In an interview with the BBC, Georgieva expressed fear that the demonstrations observed in Sri Lanka may be replicated in other countries if the appropriate government backing is not provided.

When it comes to the cost-of-living situation, the IMF chief stated that there are two priorities: one is to assist the extremely poor and parts of society who are presently dealing with high food and energy rates, and the second is to assist enterprises that have been severely harmed by the conflict in Ukraine.

She added, “the IMF’s role is to work with governments to stabilize the global economy and enhance prosperity. However, that's proving challenging because food prices have hit record highs this year, while oil and gas prices have also risen sharply.”


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