'No time to recover': UNDP chief sounds alarm on growing poverty after Iran war shock
Summary
Millions could be pushed into poverty as soaring energy prices, high interest rates and a record El Nino strain developing economies already battered by repeated crises. The UNDP warns that 130 million people may fall into poverty this year if food and energy costs are fully passed on without subsidies.
Key Points
- The UNDP says about 130 million people are at risk of being pushed into poverty this year if energy and food price increases are not cushioned by subsidies.
- UNDP chief Alexander de Croo warned that developing countries have little room left to absorb repeated shocks after wars, inflation, debt stress and the pandemic.
- Rising borrowing costs and higher interest payments are limiting fiscal space in poorer countries, with the median developing country now spending about 9.5% of government revenue on interest.
- The agency also warned that a record-strong El Nino could intensify flooding, droughts and other extreme weather, adding to economic losses.
