Poverty deepens as families face multiple shocks with limited resources — Global Issues

The report reveals that more than two in three people now endure “multidimensional poverty” or are at risk of falling into it, with over 37 million people – 68 per cent of the population – experiencing overlapping crises.
‘Everyone is losing’
“Myanmar may no longer dominate international headlines, but the hardships facing millions of people continue to deepen,” said Kanni Wignaraja, UNDP Regional Director for Asia and the Pacific.
The UN continues to highlight multiple problems facing the people of Myanmar, which has been engulfed in civil war since the military seized power in February 2021. The country also faces macroeconomic instability, recurrent disasters and the additional impact of the devastating March 2025 earthquake.
“We are seeing a depth of poverty in Myanmar that is eroding human development itself. This is a no-win war. Everyone is losing. The core muscle of the country is being systematically eroded,” Mr. Wignaraja explained.
Dwindling resources
The report – Layers of Deprivation: Multidimensional Poverty in Myanmar, – suggests that country is confronting more than an income crisis as many buffers that helped families to absorb shocks – such as savings, stable livelihoods, access to services and social support networks – are steadily disappearing.
Deficits in health and living standards account for more than 80 per cent of multidimensional poverty. They include challenges in accessing healthcare, adequate housing, clean water, sanitation and other essential services, particularly in conflict-affected areas.
Mixed picture
Poverty also varies across Myanmar, according to the report. In some areas, conflict, displacement and restricted access to services are the main drivers, while long-standing gaps in livelihoods, education, infrastructure and public services are the chief challenges in others.
Rakhine state in western Myanmar is among the most severe multidimensional poverty hotspots. More than two-thirds of the population are multidimensionally poor and nearly a third are severely poor.
Deprivation among some stateless and displaced populations there may be understated because of limitations with collecting data by phone. This includes ethnic Rohingya communities who have faced decades of repression by the military that then UN High Commissioner for Human Rights Zeid Ra’ad Al Hussein likened to “textbook” ethnic cleansing in 2017.
The findings also challenge assumptions that poverty is primarily rural. While the Yangon region has lower poverty rates than many conflict-affected states, it is also home to one of the largest concentrations of multidimensionally poor people, reflecting deepening vulnerabilities among urban and peri-urban households.
Climate and economic shocks
The report was released at a time when roughly one in five households in Myanmar faces climate-related risks such as floods, cyclones, droughts and landslides. These shocks are expected to intensify with the coming El Niño weather pattern.
The report noted that by the end of August, roughly 600,000 people had been affected by flooding.
Communities are also feeling the strain from “external economic shocks” such as rising fuel prices linked to the Gulf crisis, inflation and increasing food costs.
Youth exodus
The report also highlights the situation of young people who are growing up amid conflict, insecurity and deep economic and social stresses. It warned that as opportunities shrink, many face limited options with regard to education, jobs, mobility and their futures.
At least one million young people may have left Myanmar since 2021, which UNDP called one of the largest losses of human capital in the country’s recent history – and at a time when the population is ageing.
Meanwhile, nearly half of households that depend on casual labour are multidimensionally poor. These families, migrants and households in conflict areas face the highest poverty levels, underscoring the need for greater investment in decent livelihoods, education and essential services.
“The greatest risk facing Myanmar is not only the deepening of poverty today, but the narrowing of opportunities tomorrow,” said Mr. Wignaraja.
“Societal recovery cannot wait for a conflict to end. Investing in livelihoods, education, healthcare, local markets and basic services remains essential to preserving the fundamental human capabilities the country will need to heal and move forward”.