UNITED NATIONS, Sept 24 (Reuters) - World Bank President Robert Zoellick warned on Wednesday of the economic damage that developing countries, already reeling from high food and fuel prices, could suffer from the global financial crisis.

Addressing a business forum on the sidelines of the U.N. General Assembly, Zoellick said many developing countries were already facing balance of payments pressure as rising prices push import bills higher.

"The question now is whether the turmoil coming out of the financial crisis pushes them over the edge?" he said.

"I am concerned with the ripple effects of this financial crisis" that could put developing countries in more difficult circumstance, Zoellick said.

The global financial crisis has sent financial markets reeling and deepened concerns about a slowdown in global economic activity.

Developing countries could be hurt if demand for their export products dropped, investment declined and terms of trade were affected, Zoellick said.

In response to the latest shockwaves on Wall Street, the U.S. Treasury has proposed U.S. taxpayers spend up to $700 billion to bail out the U.S. financial system.

Earlier on Wednesday, International Monetary Fund Managing Director Dominique Strauss-Kahn estimated the overall cost of the global financial crisis had risen to $1.3 trillion from previous estimates of around $1 trillion.

The IMF expects global growth to ease in 2008 to around 3 percent from 5 percent last year. But it sees a pick up in 2009 to 4 percent.

Earlier, Zoellick told Britain's Channel 4 television channel the impact of the credit crunch was already visible in the effects on developing countries' equity markets and in spreads on their corporate borrowing.

"If you get an economic slowdown of a more serious nature, it will affect their exports. Much of their investment is related to productive capacity for the export market, so you could see the ripple effects affecting banking systems," he said. LINKS > IMF-Turmoil cuts global growth.[ID:nN24374129] > IMF head: financial crisis to cost $1.3 tln...[ID:nWBT009807] > Full coverage of global financial crisis......[ID:nN13574113]

(Reporting by Lesley Wroughton in New York and Adrian Croft in London: Editing by Neil Fullick)

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