The United Nations Development Programme (UNDP) warns that the conflict in Iran could drive more than 32 million people into poverty worldwide. The agency says the war's impact persists even if hostilities cease immediately.
According to the UNDP, a 'triple shock' of energy disruptions, rising food prices, and sluggish economic growth threatens to reverse years of global development. This economic regression follows the International Monetary Fund's (IMF) recent decision to downgrade its global economic outlook.
Economic fallout
The IMF revised its projections under three distinct scenarios, all tied to the duration of the Iranian conflict. The fund's assessments reflect growing uncertainty regarding the stability of global markets as the war continues.
Energy security remains a primary concern for international analysts. Disruptions in the region threaten to spike costs for fuel and electricity, further straining the budgets of developing nations.
Food security is also at risk due to the projected rise in commodity prices. The UNDP highlights that the combination of these factors creates a cycle of economic decline that is difficult to break.
