News from 2022-05-12 / KfW Research
Low-income countries are in the grip of soaring global market prices for fuel and foodstuffs
The war in Ukraine is adding upward pressure on global market prices of fuels and foodstuffs, which had already increased last year. Most low-income countries are net importers of both groups of products, so they are struggling with price rises. At the same time, they have little scope for additional expenditure such as subsidies or transfers because their state finances were mostly already in a very precarious state before the current developments.