Developing Economies Face Compounding Crises Amid Energy Surges and High Interest Rates, UNDP Report Warns

A new report from the United Nations Development Programme (UNDP) indicates that developing countries are grappling with escalating pressures, including renewed energy price surges following a ceasefire breakdown in the Middle East, a potential record El Niño, and global benchmark interest rates at multi-decade highs. Governments have absorbed energy price increases at considerable fiscal cost, with global fossil fuel subsidies potentially exceeding $1 trillion this year, a situation deemed unsustainable. Fiscal constraints and rising debt service are increasingly diverting resources from long-term development.