Nov 18 (Reuters) - Saint Lucia's economy will face intensifying risks of natural disasters linked to climate change, the International Monetary Fund (IMF) said on Friday, advising the Caribbean state to build buffers despite financial constraints. "Downside risks dominate," it said in a statement, pointing to the pandemic, higher food and energy prices, costlier imports, tighter financial conditions and the rising costs of natural disasters for the small, tourism-dependent island nation. Poor countries on the front lines of fiercer floods, droughts and storms have pushed during this month's COP27 U.N. climate conference for rich countries to pay into a "loss and damage" fund to address the mounting cost of climate disasters. The IMF predicts natural disasters will cost Saint Lucia some 0.7% of gross domestic product this year. The IMF encouraged authorities to prioritize spending and increase pass-through of global energy prices, while supporting vulnerable households with targeted transfers.

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