International instability? - Financial indicator
August 2008
IMF warning about high food and fuel costs about to create balance of payments crisis
The IMF warns that 75 countries are at the ‘tipping point’ where higher food and fuel costs are threatening to create a balance of payments crisis. Many have walked a long road to an economic stability which is suddenly under threat, giving them a stark choice between huge deficits or sharply lower economic growth. Inevitably there will be hunger and poverty for many. Local charities will feel the problem first but if circumstances continue to deteriorate the call for international aid will be on a very large scale indeed.
Author: John Kelly
John Kelly is head of client investment at CCLA.
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