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International aid organisation Oxfam is the latest to feel the economic squeeze.
Oxfam NZ said yesterday it expected a $500,000 funding shortfall.
"Everyone's feeling the pinch, but it's been a particularly tough year for people in the developing world. People living in poverty need our support now more than ever," Oxfam NZ executive director Barry Coates said.
The impact of world financial turmoil was dire on those living in poverty, he said.
The International Labour Organisation said 100 million people would be pushed into poverty, living on less than $2 a day, as a result of the crisis.
The recession and fall in the dollar had started to impact on Oxfam's work in the Pacific, East Asia and Africa, Mr Coates said.
Oxfam NZ was doing everything it could to prevent the shortfall hurting its work.
It has cut its operational budget by 8.2 per cent.
Almost 2000 people in the Papua New Guinea highlands would miss out on access to fresh water this year because the dollar now bought fewer materials, Oxfam's PNG water engineer Pauline Komolong said.
- NZPA
