UNDP warns crises could push 49 million more people into food insecurity

  • UNDP warned governments are losing room to shield consumers from higher energy prices.
  • Fuel subsidies could cost more than $1 trillion this year, the UNDP report said.
  • UNDP surveyed 26 nations, with all saying conditions would worsen.

Developing countries are facing mounting pressure from higher energy costs, a super El Nino and sharply higher borrowing expenses, with governments running out of fiscal room to shield consumers. A United Nations Development Programme report said fuel subsidies could cost more than $1 trillion this year, while efforts to cushion food and energy prices become harder to sustain. The strongest El Nino since 1950 is expected to bring more floods and droughts, potentially pushing 49 million additional people into food insecurity by the end of 2027. The Iran war has raised energy prices and broadened the crisis to approximately 100 countries. UNDP officials are expected to address the risks at the IMF and World Bank meetings in Bangkok from October 12 to 18. UNDP said higher prices contributed to protests and social unrest in 10 countries in September; 22 of 26 surveyed nations rated the crisis a high or medium priority, 13 said it compounded an existing economic or fiscal crisis, and all said conditions would worsen.

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