Chapter 2 Vulnerability Analysis
- Stefania Fabrizio
- Published Date:
- July 2012
Despite the strong recovery, LICs’ macroeconomic policy buffers remain fragile, and the global outlook is deteriorating. LICs are more exposed to a sharp downturn in global growth than they were before the 2009 crisis as their fiscal buffers have not yet been rebuilt. LICs also remain exposed to further commodity price volatility given, in particular, the severe impact of high food prices on poverty.