UN warns energy, climate and debt pressures threaten developing countries

The UN Development Programme says developing countries are facing three pressures at once: high energy prices, climate risks from El Niño and rising borrowing costs.

Its warning came before annual meetings of the International Monetary Fund and World Bank in Bangkok.

Oil prices have risen above $100 a barrel, while El Niño could bring widespread crop failures and more extreme weather.

Governments have used emergency measures to shield up to 130 million of the world’s poorest people from higher prices, but many now have less money to keep that support going.

UNDP chief Alexander De Croo warned that the combined pressures could push tens or even hundreds of millions of people back into poverty.

Separate research says low-income countries facing debt distress have cut education spending by an average of 8% since 2019, and overall public spending by 2%.

De Croo called for urgent access to affordable financing, and said the situation could worsen through the spring.