In this article, we will be taking a look at the 20 least productive countries in the world. You can also check out 20 Most Overworked Countries in Asia.
US Labor Productivity Growth Stagnates Amid Declining Labor Participation
The increase in worker productivity has been the main driver of the US economy and has raised real wages. A McKinsey analysis released on February 16 stated that since 2005, the US has had below-average productivity growth, with an average of just 1.4%. This is due to a decreased labor participation rate.
In the first quarter of 2024, US nonfarm business sector labor productivity increased by 0.3%, a significant slowdown compared to the previous quarter’s growth of 3.5%. This marks a lower-than-average performance, as the long-term average for US labor productivity growth stands at 2.17%. The annual average labor productivity growth in the US nonfarm business sector was 1.2% in 2023 which is a modest improvement from -1.9% in 2022 but still below the historical average.
Manufacturing sector productivity in the US has been sluggish, with an annual average decline of 0.8% in 2023. However, there are variations within the sector, with durable manufacturing experiencing a 2.0% productivity drop, while nondurable manufacturing saw a 2.6% increase. Since the pandemic, US labor productivity has grown at a robust annual pace of 1.5%, outperforming other advanced economies where productivity growth has been scant or negative.
Biggest and Most Productive Companies in the World
When it comes to the most productive companies in the world, Amazon, PayPal Holdings, and Apple, among many others, can’t be left behind. Amazon’s e-commerce platform and vast product offerings have made it a dominant force in online retail, capturing a staggering 37.8% of all online retail sales in the U.S. One of Amazon’s most significant contributions to the global economy is its role as a job creator. As of mid-2023, Amazon employed over 1.6 million people worldwide, making it the fourth-largest U.S. company by market capitalization. Additionally, Amazon’s investments have supported nearly 1.6 million indirect jobs in fields like construction and hospitality. In Q1 2024, their net sales increased 13% year-over-year to $143.3 billion, exceeding expectations and net income more than tripled to $10.43 billion or $0.98 per share, surpassing analyst estimates of $0.84.
Similarly, PayPal Holdings, Inc. is a leading technology platform. PayPal operates a vast global network connecting 426 million active accounts across approximately 200 markets as of December 31, 2023. Since 2013, PayPal has facilitated $24.2 billion in access to small business capital through over 1.2 million loans and cash advances, including $3.6 billion in 2021 alone. In 2021, PayPal completed the allocation of its $535 million commitment to racial equity and social justice and pledged $108 million towards investments supporting the economic empowerment of women and girls. Their revenue reached $7.7 billion in Q1 2024, up 9% year-over-year and the operating income surged by 17% to $1.168 billion.
Lastly, Apple is also one of the most innovative and productive companies. The company has committed to investing $430 billion in the US over five years, creating 20,000 new jobs across the country. In Q1 2024 Apple reported total revenues of $119.6 billion, up 2% year-over-year and their active installed device base surpassed 2.2 billion, an all-time high.
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Our Methodology
For our methodology, we have ranked the least productive countries in the world based on estimated GDP per capita in 2023. For the accuracy of data, we relied on Ilostat.
Here is our list of the 20 least productive countries in the world.
20. Guinea Bissau
GDP per Hour Worked: $3
Guinea-Bissau is one of the least developed and productive countries in the world. The country’s GDP per capita was only $1,900 in 2022, one of the lowest in the world, per CIA. The economy is almost entirely dependent on a single crop, cashews, which accounts for 90-98% of total export earnings according to the World Bank. Agriculture makes up over 45% of GDP and employs 80% of the labor force. The country ranks as “repressed” in economic freedom.
19. Afghanistan
GDP per Hour Worked: $3
Afghanistan is one of the least developed countries. The country’s economy is heavily dependent on agriculture, with an estimated 79% of Afghans dependent on agriculture and related agribusinesses for their livelihoods. The country’s GDP per capita stood at $422.23 in 2022.
18. Togo
GDP per Hour Worked: $3
Togo is a low-income country in West Africa with a primarily agrarian economy. Agriculture provides two-thirds of Togo’s jobs, but labor productivity remains low on most farms. Poverty levels are twice as high in rural areas (58.8%) as in urban areas (26.5%) per World Bank. Poverty is also higher in female-headed households (45.7%) than in male-headed households (45.2%). The GDP per capita stood at 942.65 USD in 2022. Togo stands among the most underdeveloped countries in the world.
17. Mali
GDP per Hour Worked: $3
Mali is one of the least productive countries in the world, with a GDP growth rate of only 3.07% per year as of 2021. Agriculture is the cornerstone of Mali’s economy, with 80% of the population engaged in agricultural activities. Only 7% of 43.7 million arable hectares of land is currently cultivated, and 14% of 2.2 million potential irrigable hectares are currently irrigated. Over 29% of Mali’s population is malnourished and the country has a poverty rate of 90%, concentrated in the densely populated rural areas of the south.
16. Tanzania, United Republic of
GDP per Hour Worked: $3
Tanzania is one of the least developed countries in the world, with a GDP per capita of just $1,192.27 as of 2022. The agriculture sector remains the predominant employer, accounting for over 60% of the workforce according to the World Bank, but productivity is stagnant.
15. Burkina Faso
GDP per Hour Worked: $3
Burkina Faso has a GDP per capita of 830.04 USD as of 2022. The education sector is declining in the country. The World Bank notes that 85% of 10-year-olds in Burkina Faso cannot read and understand a simple text by the end of primary school, higher than the regional average of 80%. 42% of adolescent girls are out of school, higher than both the regional average of 33% and the average for its income group of 40%. The World Bank further notes that more than 40% of the population lives below the national poverty line. The country started fiscal consolidation in 2023 with the deficit falling to 6.5% of GDP – 1% lower than in 2022 (excluding a one-time inclusion of all accumulated securitized debt in 2022).
14. Lesotho
GDP per Hour Worked: $3
Lesotho is one of the countries with the least productivity. Lesotho’s per capita gross domestic product (GDP) was $969.49 in 2022. The economy expanded by 2% in 2023, which was mainly driven by the public sector and construction, especially the Lesotho Highlands Water Project-II megaproject.35 out of 100 children in Lesotho are stunted, putting them at risk of cognitive and physical limitations that can last a lifetime. Additionally, only 52% of 15-year-olds will survive until age 60.
13. Malawi
GDP per Hour Worked: $2
Malawi had a GDP per capita of 645.16 USD in 2022. The country’s economy is heavily dependent on agriculture, which accounts for about one-third of GDP and 80% of export revenues. Malawi’s economy is projected (by World Bank) to grow by 2.0% in 2024, which would result in a contraction in per capita terms given the population growth rate of 2.6%.
12. Soloman Islands
GDP per Hour Worked: $2
The Solomon Islands’ GDP composition shows that agriculture accounts for 34.3% of GDP, while industry (including manufacturing) is only 7.6% and services make up 58.1%. The country’s GDP growth rate has been negative in recent years, with -4.06% in 2022, -0.57% in 2021, and -3.38% in 2020. The country’s GDP per capita was $2,200 in 2022, which is relatively low compared to other countries.
11. Sierra Leone
GDP per Hour Worked: $2
Sierra Leone stands eleventh among the least productive countries in the world with a GDP per capita of 475.80 USD in 2022. Sierra Leone’s large youth cohort, with about 60% (per CIA) of the population under the age of 25, continues to struggle with high levels of unemployment, which was one of the major causes of the civil war and remains a threat to stability today.
10. Chad
GDP per Hour Worked: $2
Chad is one of the countries with the lowest productivity with a GDP per capita of 716.80 USD in 2022. Despite the start of oil production in 2003, around 40% of Chad’s population lived below the poverty line as of 2018 according to CIA. The country has a very high fertility rate and a large youth cohort, with more than 65% of the population under the age of 25 as of 2022. Chad also has the world’s second-highest maternal mortality rate. The country has limited infrastructure, with only 40,000 km of highways as of 2018. The country also hosts more than 403,000 refugees from Sudan and more than 120,000 from the Central African Republic.
9. Eritrea
GDP per Hour Worked: $2
Eritrea is one of the poorest countries in the world with a GDP per capita of $650.82 in 2022. The country’s narrow mining sector, which accounts for 20% of GDP, has also faced challenges that contribute to the overall economic instability. In 2022, real GDP growth slowed to an estimated 2.3% from 2.5% in 2021 which is partly due to the impact of Russia’s invasion of Ukraine on fertilizer and food prices.
8. Mozambique
GDP per Hour Worked: $2
Mozambique is one of the least productive countries in the world, with a GDP per capita of just $558.30 in 2022. Despite having one of the fastest-growing economies in Sub-Saharan Africa from 2000-2015, job creation, poverty reduction, and human capital accumulation in Mozambique are still limited. The country’s GDP growth reached 4.1% in 2022 and is expected to accelerate to 6% over 2023-2025 which is driven by continued recovery in services, increased liquefied natural gas production, and high commodity prices. Inflation also reached a five-year high of 9.8% in 2022 before moderating to 7.1% in 2023 as global commodity prices subsided.
7. Congo, Democratic Republic
GDP per Hour Worked: $2
Congo is one of the poorest countries in the world with a GDP per capita of $653.66 in 2022. The DRC has extremely high poverty rates, with 74.6% of the population living on less than $2.15 per day as of 2023 according to World Bank. Only 45% of children in the country can complete primary education, and 43% are malnourished. In 2023, food price inflation reached 173%.
6. Madagascar
GDP per Hour Worked: $2
Madagascar stands sixth among the least productive countries in the world with a GDP per capita of $514 in 2022. Madagascar has an extremely high poverty rate, with 80.7% of the population living on less than $2.15 per day in 2023. Chronic malnutrition affects 47.3% of children, which is the fourth highest rate in the world. Madagascar’s economy is expected to grow by an average of 4.6% from 2024-2026, driven by tourism, telecommunications, and the food industry. However, the poverty rate is projected to remain elevated, with 24.8 million people expected to remain poor in 2024.
5. Niger
GDP per Hour Worked: $2
Niger is one of the countries with the lowest productivity, with a poorly diversified economy heavily dependent on agriculture, which contributes about 40% to its GDP. Only 10% of the cropped area in the country is under irrigation, and there are limited areas around permanent water systems. Niger has limited infrastructure, with only 18,949 km of highways, and had a GDP per capita of $585.40 in 2022.