AdvertisementUS, Israel war on IranThis Week in AsiaEconomicsUN warns 8 million in Asia-Pacific risk poverty if Iran war drags on
A new UNDP report has forecast job losses, crippling inflation and food insecurity, with the poorest nations brutally exposed to the oil shock
3-MIN READ3-MIN Listen
The United Nations has issued a grim warning about the costs of prolonged conflict in Iran for the Asia-Pacific region, forecasting job losses, crippling inflation and food insecurity, with the poorest nations brutally exposed to the oil shock and millions of informal workers facing the body blow of rising transport costs.
More than 8 million people in the Asia-Pacific could be plunged into poverty if a crisis that has closed the Strait of Hormuz continues to drag on, according to a study published on Tuesday by the UN Development Programme (UNDP).
The report also warned the conflict could drain up to US$299 billion of the region’s gross domestic product, with government budgets stretched to subsidise rising costs.
Advertisement
Fertiliser shortages are a particular concern for agrarian economies as Middle Eastern urea fails to pass the Strait of Hormuz, threatening Asian grain supplies and creating a domino effect on food costs.
The report comes as the leaders of the International Monetary Fund, World Bank and International Energy Agency meet in Washington to take stock of the damage to global economies and energy markets caused by the Iran war.
AdvertisementAdvertisementSelect VoiceSelect Speed0.8×0.9×1.0x1.1×1.2×1.5×1.75x1.00x