The least prosperous countries in the world

The world's poorest countries suffer from civil wars, ethnic and religious conflicts, low levels of education and shortage of basic needs, such as food and water. In recent years, the pandemic and soaring inflation have made the situation even worse.

No single reason for long-term poverty can be singled out. For example, a corrupt government can turn a rich state into the poorest country in the world. A weak rule of law, war, social unrest, harsh climatic conditions or aggressive neighbours can influence in the same way. One negative factor often leads to the formation of another. For example, a country in debt cannot maintain a decent education system, and an unskilled labour force limits the development of the economy.

Before the pandemic, the proportion of the world's population living in extreme poverty, that is, with an income of less than $1.90 a day was 8.9%, 35% down since 1990. The coronavirus not only interrupted but also reversed that progress. In 2020, the figure rose to 9.4%. In 2022, when the international poverty line was revised to $2.15 in response to the rising cost of living, the World Bank claimed another 198 million people were likely to fall into the poverty ranking in the near future. And half of the 75 countries with the world's highest poverty rates are facing widening income gaps with the richest nations for the first time this century.

How is the list of the world's least prosperous countries compiled?

Over the past two decades, the common belief has spread that living standards are rising faster in poor countries than in developed countries. Eventually, a progressive economic convergence of all nations is expected. Yet one in three countries in the financially vulnerable group, where a quarter of humanity lives, are poorer today than they were in the pre-pandemic period. The 10 richest countries in the world have an average annual purchasing power of more than $110,000 per capita, while the 10 poorest have less than $1,500.

Some countries did not make the ranking despite being clear contenders for the top positions. These include Afghanistan, Syria and Eritrea. Years of political instability and conflict have made it impossible to even attempt to assess their well-being due to a lack of reliable economic indicators.

The list of the world's most impoverished countries is generated based on following factors:

• Daily household expenditure.
• Gross domestic product per capita.
• Human capital index.
• Standard of living.

Daily expenditure

Poor states are those in which a significant proportion of citizens cannot spend more than $2.15 per day. Based on this criterion, the UN has determined that about 700 million people in the world are poor. Most of this financially vulnerable group consists of women and children. They generally face the greatest risks in the form of various forms of exploitation.

GDP per capita

GDP per capita is considered a standard metric to determine the number of poor people in the world. It is calculated by dividing total GDP by a country's population. However, the figure is not a reliable indicator of living standards. To fully understand the situation, purchasing power parity should be taken into account.

Human Capital Index

The Human Capital Index is an index that determines which countries best utilise the economic and professional potential of their citizens. It measures the amount of capital each nation loses due to a lack of robust education and health systems. The annual calculation is done by the World Bank.

The index is based on three factors:

• Survival rate: the percentage of children who survive to 5 years of age.
• Education: duration, quality and accessibility.
• Health: adult survival rate and the percentage of stunting in children under 5 years of age.

Quality of life

Standard indicators of quality of life include citizens' financial well-being, quality of their nutrition and access to clean water, environmental conditions, level of physical and mental health, ability to seek medical care and education, social security, safety and freedom.

Which continent has the least prosperous countries?

Despite an abundance of natural resources, 9 of the 10 poorest nations in the world are located in Africa. The main causes of poverty on the continent are:

1. Uncontrolled population growth. The African population is growing rapidly despite numerous prevention and education campaigns. UNICEF predicts that the continent will be home to 2 billion people in 2050.
2. War and crises. Wars in South Sudan, the Democratic Republic of the Congo and the Central African Republic are slowing the countries' economic growth. Agricultural production usually comes to a halt in crisis regions. Many people flee or are forcibly evicted from their homes.
3. The African continent suffers from frequent climatic disasters. Devastating floods and extreme droughts lead to crop failures. The consequences are a famine crisis.
4. Diseases such as HIV, malaria or Ebola are a cause but also a consequence of poverty in Africa. The lack of education and an adequate health care system contributes to the spread of diseases. The average life expectancy of the population is decreasing and the number of orphans is increasing. The loss of the labour force affects agriculture, resulting in reduced food production.
5. Poor infrastructure. Many parts of Africa lack roads, wells, irrigation systems, storage facilities, which hinders its economic development.

Top 10 poorest countries in the world

South Sudan

South Sudan remains the poorest country in the world in 2024, with a population of about 15 million people and the lowest GDP per capita of $455. The state, founded in 2011, boasts rich oil reserves. It is one of the clearest examples of the resource curse, a phenomenon in which the abundance of fossils fuels political and social strife, inequality, corruption and war.

Much of the population is engaged in traditional agriculture, although high levels of violence and extreme climatic events often prevent farmers from planting or harvesting crops. This year, experts estimate that 9 million people (more than 60% of the state's population) will need humanitarian assistance.

Burundi

Burundi is among the countries poor in natural resources. The local GDP per capita is $916. The state is still coping with the dire consequences of a civil war that lasted from 1993 to 2005.

About 80% of the population (13 million people) relies on subsistence agriculture, so food insecurity in the country is almost twice as high as the African average. Other problems include unsanitary conditions and lack of access to water and electricity (less than 5% of citizens use electricity).

President Evariste Ndayishimiye is making efforts to restart the economy and restore diplomatic relations. In 2022, the US and EU countries lifted financial sanctions and resumed aid to the state. While its prosperity is growing, inflation is projected to be around 22% in 2024.

Central African Republic

For more than 10 years, the CAR has remained at the top of the ranking of the worst countries to live in. The state, rich in gold, oil, uranium and diamonds, has a GDP per capita of $1,123. In 2016, citizens managed to elect a president democratically. He was former maths professor and prime minister Fosten-Arkange Taudera, who campaigned as a peacemaker seeking to bridge the gap between Muslims and Christians.

His election victory was supposed to be an important step towards national reconstruction, but large regions of the country remain under the control of anti-government groups. Despite the problems and setbacks, the local economy has moderated in recent years, thanks to the timber and agricultural industries and the partial resumption of mineral sales.

Democratic Republic of Congo

Since its independence, the DRC has faced decades of dictatorship, political instability and high levels of violence. This has ensured that the country has consistently ranked among the poorest countries by GDP per capita. In 2024, this indicator is $1,552.

About 65% of the country's population (about 65 million people) lives on less than $2.15 a day. Nevertheless, according to the World Bank, DRC has the resources and potential to become one of Africa's richest states and a growth driver for the entire continent. It is the world's largest producer of cobalt and has rich deposits of copper, an essential raw material for the production of electric vehicles.

Mozambique

Mozambique is rich in natural resources and has a favourable location. However, its GDP per capita remains at $1,649, despite a rapid growth rate of over 7% over the past decade.

Harsh climatic conditions and political instability are among the main causes of poverty in the former Portuguese colony. The situation is made worse by attacks by Islamic gangs on the gas-rich northern part of the state.

However, the local economy will continue to grow, according to the International Monetary Fund. It is expected to grow by about 5% in 2024 and 2025 and is projected to reach double-digit growth in the second half of the decade.

Niger

Niger is a country with a GDP per capita of $1,675 and is threatened by land desertification. It has a fast-growing population dependent on small-scale agriculture and a territory that is 80% desert. Food shortages are high, as are morbidity and mortality rates. Clashes between the local army and Islamic terrorists have forced thousands of citizens to relocate.

In 2021, Niger elected a new president, Mohamed Bazoum, a former teacher and former interior minister. In 2022, the economy grew by 12%, giving the population hope that the situation would improve. However, in the summer of 2023, Bazoum was overthrown and imprisoned by members of his guard. A junta has remained in power ever since.

Malawi

Malawi is one of the smallest African countries with a GDP per capita of $1,712. The local economy relies heavily on rain-fed agriculture, so food shortages in rural areas are extremely high today.

The country is struggling to cope with an economic crisis leading to fuel shortages, soaring food prices and currency devaluation. According to the World Bank, more than 70% of the population lived below the poverty line in 2023.

Liberia

Liberia is the oldest republic in Africa with a GDP per capita of $1,882. Despite its considerable potential and natural resources, the country faces many social and economic challenges such as low education levels, poverty and lack of infrastructure. It has been ranked among the most underdeveloped countries in the world for many years.

The situation in Liberia is expected to start improving. Since 2022, economic growth has resumed in the state and is projected to reach around 5.3% in 2024.

Madagascar

Madagascar has faced political instability since independence. Its GDP per capita is $1,979. The country has one of the highest poverty rates in the world at around 75%. Inflation is running at nearly 8%.

In recent years, the state has faced a number of problems, hit by the cessation of Ukrainian grain supplies. Food prices have risen sharply, causing the quality of life of citizens to drop significantly. Droughts, floods and cyclones cause loss of life and displacement, as well as damage to homes, infrastructure and crops.

Yemen

Yemen is one of the poorest countries in the Arabian Peninsula with a population of about 35 million people and a GDP per capita of $1,996. It has been in a vulnerable state since late 2014 due to a power struggle between the government and the Houthi movement. The war has killed more than 150,000 people, devastated the economy and destroyed critical infrastructure. As a result, more than 80% of the population in the oil-rich state currently lives in poverty.

The least prosperous countries in Europe

The poorest European countries in 2024 are:

1. The military conflict has significantly affected the country's economic landscape. GDP per capita is now $15,464. However, it has retained a large consumer market, an abundance of natural resources and a highly educated, economically efficient population. The main weaknesses are the lack of economic diversification and demographic decline.
2. Its young population, proximity to European markets, low labour costs and abundant natural resources attract international investment. However, the state, officially recognised as independent by the US and most EU members, is not yet recognised by other countries and international institutions, including the UN. Its GDP per capita is $16,775.
3. The country has made significant progress in strengthening democratic institutions and improving the business environment. Foreign investment is attracted by low-cost labour, free trade agreements with the EU, and WTO-compliant laws. However, nepotism, an extensive informal economy and low labour productivity weaken its prospects. GDP per capita in the republic is $17,902.

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