Thursday, December 26, 2024

Top 5 This Week

Related Posts

Top 20 poorest countries in the world in 2025

By FocusEconomics

Sub-Saharan Africa continues to dominate the list of poorest countries: When looking at our Consensus Forecasts for the economies with the lowest GDP per capita (in US dollars, current market prices) in 2025, one thing jumps out: 19 of the 20 poorest are from Sub-Saharan Africa (SSA). The only non-African nation in the top 20 is the conflict-riven, internationally isolated country of Afghanistan. Though SSA has been the second-fastest growing economic region after Asia in recent years, exceedingly high population growth – over 2 percent per annum – means that GDP per capita has risen far slower. Moreover, factors such as extreme weather, political turmoil – the continent has experienced nine coups since 2020 – and insecurity continue to stop SSA from reaching its full potential.

Below is a list of the top 20 poorest countries in the world

1st poorest country: Afghanistan

GDP per capita 2025 Consensus Forecast: USD 434
Afghanistan’s poverty stems from decades of conflict, including foreign invasions, civil wars, and insurgencies. Continuous instability has ravaged infrastructure, undermined institutional development, and deterred foreign investment. The productivity of the agricultural sector, on which most Afghans rely, is low due to outdated farming practices, water scarcity, and land degradation. Widespread corruption and a weak central government further hamper development, with the economy remaining heavily dependent on international aid. Additionally, the Taliban’s return to power in 2021 has led to the isolation of Afghanistan from global markets and financial systems, stifling the economy and exacerbating humanitarian crises. Our panelists expect only muted GDP growth next year, notwithstanding some support from infrastructure projects linking Afghanistan to Central Asian neighbors.

2nd poorest country: South Sudan

GDP per capita 2025 Consensus Forecast: USD 448
South Sudan’s poverty is tied to its protracted civil war, which erupted soon after the country gained independence in 2011. The violence displaced millions, destroyed infrastructure and disrupted agriculture, the backbone of the economy. In addition, mismanagement, corruption, and conflict over oil fields have led to inconsistent production and income of petroleum, South Sudan’s main revenue source. Ethnic divisions and fragile political institutions, high inflation, food insecurity, and a lack of education and healthcare further contribute to the country’s underdevelopment. A civil war in neighboring Sudan is causing further havoc, with South Sudanese oil exports being shut in due to a pipeline being ruptured in Sudan in early 2024. Our Consensus is for the country’s GDP growth to roughly track the SSA average in the coming years, which will be insufficient to lift the country notably up the GDP per capita rankings.

3rd poorest country: Sierra Leone

GDP per capita 2025 Consensus Forecast: USD 529
Sierra Leone’s underdevelopment is rooted in the aftermath of its brutal 1991–2002 civil war, which decimated infrastructure and strangled economic activity. Although rich in diamonds, resource mismanagement and corruption have prevented the economic returns from mining reaching the broader population. The country also suffers from poor governance and a fragile healthcare system, which was further strained by the 2014–2016 Ebola outbreak. Agriculture, the primary livelihood for many, remains unproductive due to outdated techniques and low investment.

4th poorest country: Malawi

GDP per capita 2025 Consensus Forecast: USD 552
Malawi’s poverty is driven by its dependence on subsistence agriculture, with this activity involving the majority of the population. Extreme climate events – including frequent droughts and floods – regularly disrupt crop yields, exacerbating food insecurity. The most recent of these was the El Niño weather phenomenon, which caused exceedingly dry weather in 2024. Limited industrialization, creaking infrastructure, and an education system that struggles to equip the workforce with marketable skills further stifle economic growth. Additionally, Malawi’s landlocked geography makes trade expensive and hinders access to global markets. Government inefficiencies, corruption, and high population growth further compound these issues. Substantial financial support from foreign creditors provides the economy with a lifeline but has also led to external debt accumulation; Malawi has been in debt default since 2022.

5th poorest country: Madagascar

GDP per capita 2025 Consensus Forecast: USD 577
Madagascar’s low GDP per capita is tied to multiple factors. Firstly, chronic political crises, including coups and contested elections, have weakened institutions and handicapped development efforts. Secondly, deforestation and unsustainable farming practices have degraded the country’s biodiversity, reducing agricultural productivity and increasing vulnerability to natural disasters like cyclones. Thirdly, Madagascar’s geographical isolation from major markets, combined with poor infrastructure, makes trade and investment difficult. Finally, a reliance on low-productivity agriculture and the limited diversification of industries have kept the economy stagnant: Just four goods – cloves, cobalt, nickel and vanilla – account for close to half of all goods exports. The upshot is that nearly 80 percent of the population lived in extreme poverty (that is, had income of less than USD 2.15 per day) in 2023 – the highest rate in the world.

6th poorest country: Central African Republic

GDP per capita 2025 Consensus Forecast: USD 582
The Central African Republic (CAR) is plagued by instability and conflict. Armed groups control large swathes of the country, undermining central government authority and creating a constant state of insecurity. Frequent clashes involving these groups have displaced millions, destroyed infrastructure, and prevented economic development. Though the CAR is abundant in natural resources like diamonds, gold and timber, these assets are often exploited by corrupt officials or rebel groups, with little benefit to the general population. The lack of basic services like education, healthcare and reliable infrastructure further entrenches poverty.

7th poorest country: Burundi

GDP per capita 2025 Consensus Forecast: USD 602
Burundi’s poverty is a result of its history of ethnic conflict, most notably the 1993–2005 civil war, which shattered its economy and infrastructure. The country relies on subsistence agriculture, but the sector suffers from overpopulation, soil degradation, and limited access to modern farming techniques. Furthermore, political instability and corruption have deterred foreign investment and aid. Burundi also faces a poorly developed education and healthcare system, with the latter failing to prevent the spread of epidemics such as 2024’s mpox outbreak. Finally, frequent flooding has held back activity; in the year to September 2024, torrential rains affected 300,000 people and displaced close to 50,000.

8th poorest country: Mozambique

GDP per capita 2025 Consensus Forecast: USD 668
Mozambique’s underdevelopment stems from a history of colonial exploitation, followed by a drawn-out civil war that ended in 1992. Although the country has abundant natural resources – particularly large gas reserves – their mismanagement, combined with corruption, has limited their contribution to overall development. Infrastructure, particularly in rural areas, remains basic, hampering trade. Periodic natural disasters like cyclones and floods, coupled with an ongoing Islamic State insurgency in the north, have further disrupted economic progress. Mozambique is expected to see above-average growth among SSA economies in the coming years thanks to the extractive sector, though a large share of these economic gains are unlikely to filter through to the ordinary populace.

9th poorest country: Niger

GDP per capita 2025 Consensus Forecast: USD 672
Niger’s poverty is partly driven by its harsh desert climate, which limits agricultural productivity and contributes to frequent droughts. Moreover, as a landlocked country, it faces challenges in accessing international markets, exacerbating its reliance on low-income farming. The fertility rate – one of the highest in the world – puts immense pressure on the country’s limited resources, particularly in terms of food and basic services. Additionally, Niger’s weak governance, high corruption levels, and ongoing security threats from extremist groups in the Sahel region further undermine development efforts. 2023’s successful coup exacerbated matters by reducing international aid and leading to sanctions by ECOWAS, a regional trading bloc – though the latter have since been lifted.

10th poorest country: DR Congo

GDP per capita 2025 Consensus Forecast: USD 708
The Democratic Republic of the Congo (DRC) is incredibly resource-rich – the country is the main producer of cobalt for instance, a key element in lithium-ion batteries. However, the DRC remains deeply impoverished. Civil wars and conflict, fueled by competition over minerals, have devastated infrastructure and led to millions of deaths and displaced citizens over the years. Fighting with the M23 militia – allegedly backed by Rwanda – continues in the east of the country. Widespread corruption, especially in the mining sector, prevents wealth from reaching the population; the government is ineffectual and unable to provide basic services such as healthcare, education or security. In the coming years, our panelists project that GDP growth should be rapid by regional standards, boosted by foreign investment in mining and transport infrastructure, though economic hardship will persist for many.

11th poorest country: Somalia

GDP per capita 2025 Consensus Forecast: USD 729
Somalia’s extreme poverty is primarily a result of decades of civil war, the collapse of central government authority, and an ongoing insurgency by the Al-Shabaab militant group. The prolonged absence of a functional government has left infrastructure, including schools, hospitals and roads in a state of disrepair, and piracy and terrorism have scared off potential investors. Clan-based power struggles and fragmented political control make it difficult to implement national development policies. Moreover, the country also suffers from frequent droughts, which devastate agriculture and lead to chronic food insecurity. On the flipside, flooding can also occur, as observed in 2023–2024 due to the El Niño weather pattern; the late-2023 rainy season led to torrential downpours affecting 2.5 million people. More positively, the country benefits from international aid, plus an African Union peacekeeping mission.

12th poorest country: Liberia

GDP per capita 2025 Consensus Forecast: USD 806
Liberia’s poverty is rooted in the aftermath of two devastating civil wars (1989–1997 and 1999–2003), which destroyed much of its infrastructure and left its institutions weak. Although the country is rich in natural resources such as iron ore, gold and rubber, corruption and mismanagement have prevented these industries from benefiting the broader population. The Ebola outbreak in 2014 further crippled the already shaky healthcare system and set back economic recovery efforts. Additionally, Liberia’s education system is underdeveloped, limiting opportunities for workforce development. That said, our Consensus is for the economy to grow faster than the SSA average over the coming years, supported by IMF funding and the development of the mining sector.

13th poorest country: Mali

GDP per capita 2025 Consensus Forecast: USD 909
Mali is highly reliant on agriculture, particularly cotton and livestock, making it vulnerable to climate change, droughts, and desertification. Additionally, corruption and shoddy infrastructure have discouraged foreign investment, keeping Mali trapped in poverty despite its sizable natural resources – particularly gold. Poverty is exacerbated by ongoing conflict in the northern regions against Islamist insurgencies and rebel groups, as well as by recurring political instability; successful coups took place in 2020 and 2021 for instance. The security situation has worsened in recent years due to the withdrawal of both French and UN peacekeeping troops.

14th poorest country: Chad

GDP per capita 2025 Consensus Forecast: USD 930
Chad is an oil-producing country, with petroleum accounting for roughly three-quarters of total exports. However, the revenue from Chad’s oil sector has not trickled down to the overall population, largely due to corruption and inefficient governance; the country has faced internal violence in recent years due to rebel groups and Islamist militias, as well as political instability entrenched by the military takeover of the government in 2021. Moreover, Chad’s vast desert landscape limits its agricultural potential, and its landlocked position makes trade difficult. Adding to this, agriculture is further afflicted by extreme weather: In 2024, the country suffered severe flooding that claimed hundreds of lives. Our panelists expect the country to remain poor in the coming years as GDP growth is forecast to be muted by persistent political instability and the nationalization of private-sector oil assets.

15th poorest country: Burkina Faso

GDP per capita 2025 Consensus Forecast: USD 964
Burkina Faso’s poverty is driven partly by climate-related challenges: The country’s reliance on subsistence agriculture, particularly cotton, makes it vulnerable to environmental shocks. Adding to this challenge, there is ongoing insecurity caused by extremist insurgencies in the Sahel region, which have become more acute since Western forces withdrew in 2023; significant portions of the country’s territory are outside of government control. Political instability is rife, amid two coups in 2022 and the possibility of further violent takeovers going forward. Finally, widespread corruption, teetering infrastructure and a weak education system further constrain economic diversification and economic growth. That said, the development of the gold-mining sector will support the economy in the coming years.

16th poorest country: The Gambia

GDP per capita 2025 Consensus Forecast: USD 980
The Gambia’s economy is undiversified and relies on tourism and nut exports. Moreover, the authoritarian rule of Yahya Jammeh (1994–2017) left a legacy of corruption and weak institutions that continue to hinder development. Additionally, high youth unemployment and limited access to quality education contribute further to widespread poverty, with many Gambians resorting to irregular emigration in search of better opportunities. More positively, the country appears relatively politically stable under the current leadership of Adama Barrow, which should aid investment going forward. The construction and tourism sectors, in particular, should push up GDP growth above the SSA average in the coming years.

17th poorest country: Sudan

GDP per capita 2025 Consensus Forecast: USD 1009
Sudan’s underdevelopment is closely linked to decades of civil conflict, including the Darfur crisis and wars with South Sudan, which have displaced millions and flattened infrastructure. The loss of oil revenues following South Sudan’s independence in 2011 severely impacted the economy. More recently, civil war between the Sudanese army and the Rapid Support Forces since 2023 has devastated the economy; our panelists have penciled in a double-digit GDP contraction this year. The civil war will continue to lacerate the economy going forward, with Sudan likely to record one of Africa’s softest growth rates in coming years.

18th poorest country: Guinea-Bissau

GDP per capita 2025 Consensus Forecast: USD 1057
Guinea-Bissau struggles with political instability: Frequent coups and a lack of effective governance have prevented the development of institutions and infrastructure. Drug trafficking is another major issue; Guinea-Bissau serves as a transit hub for cocaine smuggling, further eroding government stability. Moreover, the economy is largely dependent on nut exports, making it vulnerable to global market fluctuations and extreme weather. In addition, limited access to education, healthcare, and clean water keeps much of the population in poverty. That said, the economy should grow above the SSA average over our forecast horizon, thanks to IMF financial support, elevated government spending ahead of the next presidential elections, and healthy infrastructure investment.

19th poorest country: Rwanda

GDP per capita 2025 Consensus Forecast: USD 1061
Rwanda has seen a remarkable recovery since the 1994 genocide, with GDP per capita tripling so far this century. The country’s stable political environment, lack of corruption, and strong state-led development plan have all aided growth. However, poverty persists – particularly in rural areas. While the government has made strides in rebuilding infrastructure and diversifying economic growth, agriculture still accounts for around a quarter of GDP and a majority of employment. Moreover, limited natural resources and political instability in the neighbouring DRC further constrain development. But overall, Rwanda is expected to remain one of Africa’s top-performing economies in the coming years due to sustained expansions in the agriculture, industry and services sectors.

20th poorest country: Nigeria

GDP per capita 2025 Consensus Forecast: USD 1063
Nigeria’s poverty is paradoxical, given its vast oil wealth, but mismanagement and corruption have largely prevented these resources from benefiting the general population; income inequality is stark. Moreover, the country’s dependence on oil exports leaves it exposed to price fluctuations in global markets, and has arguably stifled the development of other industries. Furthermore, in the north, ongoing conflict with Boko Haram has displaced millions and shuttered economic activity, while militant groups in the Niger Delta have interrupted oil output. Despite President Bola Tinubu’s bold reform agenda, GDP growth is projected to remain below the continent’s average in the coming years due to structural constraints such as insecurity, power outages and poor infrastructure.

The post Top 20 poorest countries in the world in 2025 appeared first on Caribbean News Global.

Popular Articles