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For poor countries already facing debt distress, a food crisis looms
The war in Ukraine could soon deliver a tragic blow to many of the world’s poorest countries: many of the countries at greatest risk of a debt crisis are now grappling with the threat of a food crisis as well. Food-import bills are surging fastest for poor countries that are already in debt distress or at high risk of it , the World Bank’s latest data show. Over the next year, the tab for imports of wheat, rice, and maize in these countries is expected to rise by the equivalent of more than 1 percent of GDP. That is more than twice the size of the 2021-2022 increase—and, given the relatively small size of these economies, it’s also twice as large as the expected increase for middle-income economies. The danger of an overlapping food and debt crisis is greatest for seven countries in particular—those at high risk of debt distress or already in it: Afghanistan, Eritrea, Mauritania, Somalia, Sudan, Tajikistan, and Yemen. […]