UNDP chief warns surge in energy costs could plunge 130 million into poverty

Speaking on the sidelines of the IMF-World Bank Annual Meetings in Bangkok, Alexander de Croo of the UNDP warned that the recent spike in global fuel prices, triggered by the United States' war on Iran and Tehran's retaliatory cuts, is straining developing economies already weakened by the pandemic and other conflicts. He noted that while many countries have tried to cushion citizens with blanket subsidies, fiscal deficits and debt burdens leave little room for continued support.

The UNDP's latest analysis estimates that roughly 130 million individuals could be pushed into poverty this year if price hikes are not mitigated. De Croo also pointed to record-high interest payments—about 9.5 % of government revenue—limiting policy flexibility, and warned that an unprecedented El Niño could exacerbate climate-related damages by early 2027. He called for richer nations and multilateral institutions to provide financing and for private capital to help offset climate costs.