The United Nations Development Programme warned that the ongoing Middle East conflict is exacting heavy hidden costs on the Philippines, undermining human development gains. In a report cited by Philstar Biz, the agency highlighted disruptions in trade, remittances, and energy prices as key channels through which the conflict impacts Filipino households and businesses.
The UNDP noted that higher oil prices and supply chain uncertainties have increased inflation and slowed economic growth in the Philippines. Overseas Filipino workers in affected regions face job losses and reduced incomes, further straining the domestic economy.
The conflict's hidden costs also extend to long-term development indicators such as education and health, as government resources are diverted to manage the crisis. The UNDP urged Philippine policymakers to strengthen social safety nets and diversify energy sources to cushion the country from future shocks.