IMF says governments must protect vulnerable 'when things fall apart'

IMF Fiscal Affairs Director Vitor Gaspar said poor households spent up to 60% of their budgets on food, compared to just 10% for the average household in advanced economies

Governments must target fiscal support to vulnerable populations hit hardest by rising energy and food prices, and now facing growing food insecurity as a result of Russia's war in Ukraine, the International Monetary Fund (IMF) said on Wednesday.

Higher food and energy prices have heightened the risks of social unrest, especially in low-income countries already struggling with high debt levels after the COVID-19 pandemic, and now facing higher borrowing costs amid interest rate hikes, the IMF said in its latest report on global fiscal developments.

"Government acting in its special role to protect the vulnerable when things fall apart goes a long