UNICEF Warns Millions More Children Could Be Pushed Into Poverty

UNICEF says children living in low-income households are bearing the heaviest burden as families struggle with rising living costs and shrinking purchasing power.

The escalating conflict in the Middle East and the disruption of global shipping routes could push up to 23.4 million more children into monetary poverty by the end of the year, according to a new UNICEF analysis. The report warns that rising food and energy prices, combined with broader economic instability, are making it harder for families across the world to afford necessities, placing children at the greatest risk.

Drawing on data from more than 167 countries, the report links the growing economic strain to the continuing conflict and disruptions associated with the closure of the Strait of Hormuz. UNICEF says children living in low-income households are bearing the heaviest burden as families struggle with rising living costs and shrinking purchasing power. The report presents two possible scenarios. A moderate economic shock could push 18.3 million additional children into poverty, while a more severe and prolonged crisis could increase that figure to 23.4 million.

Asia and Africa face the greatest impact

UNICEF estimates that around 80 per cent of the projected increase in child poverty will occur in Asia and Africa, where many countries already face high poverty levels and remain highly vulnerable to external economic shocks.

The report highlights several examples of how the crisis is affecting daily life. In Somalia, fuel prices in Mogadishu more than doubled within days of the latest escalation, driving up the cost of food, water, transport and humanitarian operations. Ethiopia has seen diesel prices rise by 31 per cent, while fuel costs for humanitarian agencies have increased by 50 to 70 per cent, making aid delivery more difficult. In Nigeria, where low-income households already spend most of their income on food and transport, even modest price increases are reducing families' ability to meet basic needs. In Bangladesh, rising prices for staple foods could push an estimated 1.2 million more people into poverty.

UNICEF warns these economic pressures are limiting children's access to nutritious food, healthcare, education and protection services that are essential for healthy growth and development.

UNICEF calls for urgent action to protect children

The agency is urging governments, international financial institutions and donor countries to act quickly by protecting funding for healthcare, nutrition, education and child protection programmes. It also recommends expanding child-sensitive social protection schemes, ensuring essential services remain affordable, increasing fiscal support for vulnerable countries through debt relief where necessary, and strengthening emergency systems that can rapidly support children during future crises.

UNICEF Executive Director Catherine Russell said the consequences of the conflict are extending far beyond the Middle East, warning that continued economic disruption could erase years of development progress and leave millions of children trapped in deeper poverty if urgent action is delayed.