In this article we are going to list the 10 poorest countries in the world. For a detailed coverage of this topic and a more comprehensive list please take a look at the 50 poorest countries in the world.
10. Lesotho
Total GDP (in billions): $2.5
GDP Per Capita: $1,o94
5 Year CAGR: 1.6%
Lesotho is a small, landlocked country located in Southern Africa. Lesotho is known for its natural resources, including water, which is a major source of revenue for the country through the export of hydroelectric power. However, Lesotho has also faced a number of challenges, including political instability, conflict, and a lack of infrastructure. The country has a high poverty rate, with more than three-quarters of the population living below the poverty line. Lesotho has been plagued by slow economic development and political instability.
9. Afghanistan
Total GDP (in billions): $14.8
GDP Per Capita: $369
5 Year CAGR: -4.8%
The International Monetary Fund (IMF) estimates that Afghanistan’s economy contracted by approximately 50% between 2001 and 2020, and that the poverty rate rose from 35% in 2001 to 60% in 2020. The Taliban returned to governing Afghanistan last year after the U.S. occupation, which lasted 20 years, ended without any significant progress made while trillions of dollars were spent. With sanctions being implemented on the Taliban because of their decisions which are against Western values, Afghanistan’s economy is likely to shrink further in the coming years.
8. Syria
Total GDP (in billions): $11.1
GDP Per Capita: $533
5 Year CAGR: -7.5%
Syria has the second worst CAGR of any countries in the world, thanks to it being home to a major proxy war involving major nations which has resulted in a major recession in the country leading to a crisis among the population in the country. The International Monetary Fund (IMF) estimates that Syria’s economy contracted by approximately 60% between 2010 and 2020, and that the poverty rate rose from 35% in 2010 to 70% in 2020. Agriculture, including crops such as wheat, cotton, and fruits, as well as livestock and forestry, accounts for a significant share of the country’s Gross Domestic Product (GDP) and employs a large proportion of the labor force. Syria also has some mineral resources, including oil, natural gas, and phosphates.
7. Liberia
Total GDP (in billions): $3.5
GDP Per Capita: $676
5 Year CAGR: 0.7%
In the last 35 years, two civil wars have taken place in Liberia, which have greatly devastated its economy. Here is what Worldbank said about Liberia:
“After contracting by 3.0% in 2020 due to the COVID-19 pandemic, growth recovered to 5.0% in 2021. The rebound was driven by improved external demand, higher prices for Liberia’s main exports, and the resumption of normal domestic activity. Meanwhile, growth slowed in the first half of 2022, even if mining and construction continued to perform well. In agriculture, rubber and cocoa production dipped by 13.5% and 27%, year-on-year, respectively. In the industrial sector, iron ore, gold, and cement production all increased, reflecting firmer international prices and an uptick in construction activity. However, services growth fell, as reflected in the decline in beverages and electricity production.”
6. Gambia
Total GDP (in billions): $2.0
GDP Per Capita: $772
5 Year CAGR: 6.3%
Gambia is a small country, about 10% smaller than Connecticut but with a population of 2.5 million. While it is still among the poorest countries in the world, Gambia, which is heavily dependent on agriculture, has displayed a very healthy CAGR over the past 5 years, which might make it ripe for investment.
5. Guinea-Bissau
Total GDP (in billions): $1.6
GDP Per Capita: $795
5 Year CAGR: 3.9%
The country gained independence from Portugal in 1974 but has suffered from political instability since.
4. Somalia
Total GDP (in billions): $7.6
GDP Per Capita: $447
5 Year CAGR: 6.3%
Somalia has faced decades of civil war, which is one of the primary reasons why it is still one of the poorest countries in the world.
3. Sierra Leone
Total GDP (in billions): $4.0
GDP Per Capita: $480
5 Year CAGR: 1.7%
Sierra Leone has failed to develop at a rapid pace due to government corruption, lack of civil rights, poor infrastructure and lack of a proper educational system.
2. Central African Republic
Total GDP (in billions): $2.5
GDP Per Capita: $461
5 Year CAGR: 4.0%
While the Central Africa Republic has seen improvement in recent years, it still needs to do a lot more to climb out of this list, with a lack of accountability and poor implementation of regulations being some of the reasons that the country has struggled to progress.
1. Burundi
Total GDP (in billions): $2.8
GDP Per Capita: $221
5 Year CAGR: 0.5%
Topping the list of the 50 poorest countries in the world is Burundi, which has suffered massively because of internal conflict and corruption. In May 2015, a coup was attempted which failed and the country has struggled to improve since, reflected by a meagre CAGR of 0.5% over five years.
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