Want to know about the poorest countries in the world? This article lists the bottom ten economies by GDP per capita ranking 2024
Despite global wealth, several countries grapple with extreme poverty. This article lists the poorest countries in 2024 based on GDP per capita. Before diving into the list, let’s grasp GDP per capita and how countries are ranked accordingly.
Gross Domestic Product (GDP) per capita measures a country’s economic output per person. It’s calculated by dividing the country’s GDP by its population. This metric helps compare economic performance among nations.
Countries with low GDP per capita often face challenges like inadequate infrastructure, limited access to education and healthcare, and high unemployment rates. It’s crucial to note that while GDP per capita provides insight into a country’s economic standing, it doesn’t reflect income distribution or overall living standards.
The poorest countries in the world, based on GDP per capita, include Burundi, the Central African Republic, the Democratic Republic of the Congo, and Niger. These nations face significant economic hurdles, requiring sustained efforts to improve living conditions and promote economic growth.
Explanation of how GDP per capita is calculated and its limitations as an economic indicator.
Gross Domestic Product (GDP) is a key indicator of a country’s economic performance, measuring the total value of all goods and services produced within its borders in a specific period, usually annually or quarterly. It provides a broad statistical picture of a country’s overall economic health.
However, to understand the economic well-being of the average citizen, GDP per capita is more informative. GDP per capita is calculated by dividing the GDP of a country by its population. This metric gives an approximate average of how much economic output each person generates.
When comparing countries based on GDP per capita, higher figures generally indicate a higher standard of living and economic prosperity. However, this metric has its limitations, as it doesn’t account for income distribution within a country, which can vary widely.
Countries are often ranked based on their GDP per capita to assess their relative wealth and standard of living. This ranking can help policymakers, economists, and investors understand and compare economic development and living standards across different countries.
Poorest countries in the world by GDP per capita PPP
As of May 24, 2024, the International Monetary Fund (IMF) has estimated the poorest countries in the world by GDP per capita (Purchasing Power Parity). These nations face significant economic challenges, with low GDP per capita indicating limited individual wealth and economic resources. Here are the poorest countries in 2024:
| Country | GDP Per Capita |
| South Sudan | $ 455.16 |
| Burundi | $ 915.88 |
| Central African Republic | $1.12 thousand |
| Democratic Republic of the Congo (DRC) | $1.55 thousand |
| Mozambique | $ 1.65 thousand |
| Niger | $ 1.67 thousand |
| Malawi | $ 1.71 thousand |
| Liberia | $ 1.88 thousand |
| Madagascar | $ 1.98 thousand |
| Yemen | $ 2 thousand |
Smaller and less powerful countries in challenging regions often find themselves among the bottom ten economies globally. Nations like Liberia and Chad face significant obstacles, including limited natural resources, weak financial sectors, and unfavorable tax regimes that deter foreign investment and stifle growth.
Even larger countries, such as the Democratic Republic of the Congo (DRC) and Mozambique, are plagued by extreme poverty. These nations grapple with internal conflicts, political instability, and inadequate infrastructure, all of which severely hamper their economic development.
Poorest countries in the world: A closer look
The bottom ten economies, often termed the world’s poorest, face a confluence of challenges contributing to their economic status. These nations, including Burundi, Malawi, Niger, Mozambique, South Sudan, Central African Republic, Madagascar, Democratic Republic of the Congo, Afghanistan, and Guinea-Bissau, grapple with various factors hindering their economic development and prosperity.
- GDP: $25.83 billion
- Population: 11,205,383
South Sudan, the world’s youngest country, achieved independence in 2011 but confronts daunting economic hurdles. Political turbulence, persistent conflicts, and inadequate infrastructure impede its development. The majority of its population depends on traditional agriculture, yet frequent violence and harsh climate conditions frequently disrupt farming, perpetuating poverty in this landlocked nation of approximately 11 million people.
- GDP: $3.06 billion
- Population: 13,459,236
Burundi, a small landlocked country in East Africa, faces substantial socio-economic hurdles, including political turmoil, conflicts, and insufficient infrastructure. These challenges are intensified by rapid population growth, making it challenging to meet the needs of its citizens.
Approximately 80 percent of Burundi’s population relies on subsistence agriculture, leading to high levels of food insecurity compared to other sub-Saharan African nations. Despite efforts to improve the situation, the country continues to grapple with these complex issues, highlighting the need for sustained development initiatives and international support to enhance the well-being of its people.
- GDP: $3 billion
- Population: 5,849,358
The Central African Republic (CAR), located in Central Africa, faces significant economic hurdles stemming from political unrest, armed conflicts, and deficient infrastructure. Despite possessing substantial reserves of gold, oil, uranium, and diamonds, the country’s population endures widespread poverty. Recent challenges, including price hikes for essential commodities due to the Ukraine war and recurring flooding and droughts, have compounded the CAR’s economic woes.
- GDP: $15.42 billion
- Population: 104,354,615
The Democratic Republic of Congo (DRC), the largest country in Sub-Saharan Africa, grapples with significant economic hurdles despite its abundant natural resources, notably cobalt and copper. A majority of its populace resides in poverty, with approximately 62 percent of Congolese surviving on less than $2.15 daily. Malnutrition, restricted educational and healthcare opportunities, along with high birth rates, compound the nation’s poverty and impede its development.
- GDP: $23.96 billion
- Population: 34,497,736
Mozambique, once a resource-rich former Portuguese colony, struggles with poverty amidst natural disasters, disease, and rapid population growth. Despite its strong GDP growth, the country remains among the world’s poorest due to low agricultural productivity and wealth inequality. Attacks from Islamic insurgent groups in the gas-rich north add to its challenges.
- GDP: $19.54 billion
- Population: 27,844,740
Niger, situated in West Africa, grapples with economic hurdles and pervasive poverty, largely stemming from its scant natural resources, recurrent droughts, and predominantly agrarian economy. With 80 percent of its land covered by the Sahara Desert and a burgeoning population dependent on subsistence farming, the country faces a formidable challenge in combating desertification.
- GDP: $11.04 billion
- Population: 21,390,465
Malawi, situated in southeastern Africa, boasts stunning landscapes, including the shimmering waters of Lake Malawi. However, the country faces substantial economic hurdles. Its economy heavily depends on rain-fed agriculture, leaving it susceptible to climate change and volatile commodity prices.
Despite these challenges, Malawi’s government is dedicated to fostering economic diversity, enhancing education and healthcare, and alleviating poverty. These efforts aim to create a more resilient and prosperous future for its people.
- GDP: $4.59 billion
- Population: 5,492,486
Liberia’s persistent poverty is rooted in a history of violent conflicts, including devastating civil wars and health crises like the Ebola outbreak. These events have left the country with unstable infrastructure and limited access to essential services. Forced migration has further disrupted agricultural activities, exacerbating food insecurity.
To address these challenges, international organizations such as the World Food Programme are working to alleviate poverty and improve Liberia’s future. Their efforts focus on sustainable development initiatives and investments in education and healthcare. These interventions aim to build a more resilient Liberia, capable of overcoming its past and thriving in the future.
- GDP: $16.77 billion
- Population: 25.6 million
Madagascar, an island nation off Africa’s southeastern coast, gained independence from France in 1960. It has faced numerous political upheavals and military coups since then. Despite these challenges, the country has achieved a degree of political stability, establishing a new constitution in 2014.
Madagascar boasts rich natural resources, but its full potential remains untapped due to internal strife, external influences, and limited resource management. Mining and tourism play significant roles in the country’s economy, contributing substantially to its GDP.
- GDP: $16.94 billion
- Population: 35.08 million
The ongoing civil war, political turmoil, and economic downturn have deeply scarred Yemen, plunging the nation into a humanitarian crisis of immense proportions. This conflict has uprooted millions of Yemenis, shattered vital infrastructure, and disrupted the country’s agricultural output.
Basic necessities such as food, clean water, and healthcare are alarmingly scarce, pushing millions to rely on aid from organizations like the UN for their very survival. The Yemeni population is confronted with a myriad of challenges, including widespread hunger, malnutrition, and the re-emergence of diseases like cholera.
Despite these dire circumstances, there are faint glimmers of hope on the horizon, as the international community strives to broker peace and stability in the region. However, the journey to recovery for Yemen will undoubtedly be prolonged and fraught with challenges.
FAQs
Q1 Which is the poorest country in Asia?
Ans. The poorest country in Asia is Yemen, with a GDP per capita of $2,000. However, years of ongoing conflicts make it hard to determine precise economic figures for assessment.
Q2 Which is the wealthiest nation in the world judged by GDP per capita country-wise?
Ans. Luxembourg is the richest country in the world by GDP per capita ranking in 2024, with the highest GDP per capita PPP of $143,740.
Q3 What is Purchasing Power Parity (PPP)?
Ans. Purchasing Power Parity (PPP) is an economic theory that compares currency values based on a basket of goods, equalising their buying power and exchange rates between different countries.
Q4 What is the GDP per capita (PPP) of India?
Ans. As of April 2024, India’s GDP per capita (PPP) stood at $10.12 thousand.