20 Poorest Countries in Asia

Published on May 22, 2023 at 6:31 am by Hamna Asim in Business, Lists, News

In this article, we discuss 20 poorest countries in Asia. If you want to see the top poorest countries in this region, check out 5 Poorest Countries in Asia.

According to the Asia Foundation, the aftermath of the COVID-19 pandemic has left the Asia-Pacific region grappling with the consequences of disrupted economic growth. The hardest-hit are the small businesses operating in the service and small-scale manufacturing sectors, which constitute a significant portion of the regional economy. These businesses have faced severe setbacks in their recovery from the pandemic, aggravated by disruptions in global supply chains, the absence of tourists from mainland China, escalating fuel and commodity costs, and the mounting effects of climate change. This precarious situation has put the approximately 70% of Asia’s workforce employed in these sectors, as well as those engaged in the informal and gig economy, in a highly vulnerable economic position.

Moreover, the Asia Foundation noted that since the Taliban assumed control of Afghanistan in August 2021, the only discernible positive change in the country has been a relative improvement in security. This is unsurprising considering that much of the violence witnessed prior to August 2021 was attributed to the Taliban insurgency. However, apart from this aspect, the hardships faced by the Afghan people have continued to escalate on all other fronts. There has been a rapid increase in poverty and unemployment, the economy is collapsing, and public services remain woefully inadequate. Unfortunately, despite these unprecedented challenges, the notable features of the Taliban’s rule in 2022 have been the implementation of strict restrictions on women’s rights. These restrictions prohibit women from working, attending school, and participating in activities outside their homes.

As per an August 2022 report by the Asian Development Bank, the fight against poverty in Asia and the Pacific has been significantly hindered by the COVID-19 pandemic, causing a setback of at least two years. The report suggests that many individuals in the region will likely face increased difficulty in escaping poverty compared to the pre-pandemic period. Economic growth in the region for 2022 was projected to bring extreme poverty, defined as living on less than $1.90 per day, to a level that would have been achieved in 2020 if the pandemic had not occurred. Furthermore, data simulations indicate that individuals in the region who had lower levels of social mobility prior to the pandemic may experience more enduring setbacks in their efforts to overcome poverty. Asian Development Bank Chief Economist Albert Park said:

“The poor and the vulnerable have been hit hardest by COVID-19, and while economies are recovering, many people may find that getting out of poverty is even more difficult than before. Governments in the region should focus on resilience, innovation, and inclusiveness to provide more balanced economic opportunities and greater social mobility for everyone.”

On April 4, 2023, the World Bank reported that South Asia’s growth prospects have been adversely affected by tightening financial conditions, leading to significant downside risks across most countries in the region. With limited fiscal capacity and depleting reserves, the countries, except Bhutan, have revised their growth forecasts downwards. In India, the largest economy in South Asia, high borrowing costs and slower income growth are expected to dampen consumption and result in a growth rate of 6.3% in FY 2023/24. Pakistan, still grappling with the aftermath of calamitous floods, faces supply chain disruptions, shrinking investor confidence, and increased borrowing and input costs, leading to a projected growth rate of 0.4 percent for the current year, assuming an agreement is reached on an IMF program. Sri Lanka is anticipated to experience a contraction of 4.3% in GDP this year, reflecting the enduring impact of the macro-debt crisis. The country’s future growth prospects, following the recent approval of an IMF program, heavily depend on debt restructuring and structural reforms. Maldives and Nepal have witnessed growth supported by the resumption of tourism and migration. However, Maldives faces risks to its fiscal and external accounts due to high external debt and tightened global financial conditions. Similarly, Nepal is expected to encounter challenges to its growth due to external shocks, domestic import restrictions, and monetary tightening.

Per the World Bank, Inflation in South Asia is projected to decline to 8.9% this year and fall below 7% in 2024. Nevertheless, weaker currencies and delayed adjustments in domestic prices contribute to a slower-than-expected decline in inflation. Elevated global and domestic food prices further exacerbate food insecurity among the poor in South Asia, as they allocate a larger share of their income towards food expenditures. Martin Raiser, World Bank Vice President for South Asia, shared his take on the region’s economic outlook:

“South Asia’s economies have been scarred by a combination of extreme shocks over the past three years, and the recovery remains incomplete. Countries should use the opportunity of lower energy prices and improving trade balances to move away from ad hoc measures, such as fuel subsidies and import restrictions implemented to address these shocks, and focus on reforms needed to build resilience and boost medium-term growth.”

Although investors are eagerly investing in Asian markets, focusing on stocks like Alibaba Group Holding Limited (NYSE:BABA), Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), and Infosys Limited (NYSE:INFY), it is important to acknowledge that the less developed Asian countries are still facing significant challenges. This article will provide an overview of the 20 poorest countries in Asia.

Our Methodology

To determine the poorest countries in Asia, we analyzed data from Credit Suisse’s Global Wealth Databook 2022. This database indicates the GDP per Adult in 2021. GDP per adult helps identify countries with lower average income levels, indicating that individuals in those countries may have limited financial resources. We selected the 20 poorest countries in Asia based on this metric, ranking the list in descending order of GDP per adult.

However, poverty encompasses multiple dimensions, including access to basic needs such as food, clean water, healthcare, education, housing, and social services. To gain a more comprehensive understanding of poverty in a country, it is essential to consider multiple indicators and measures. These aspects are not directly captured by GDP per adult.

serkan senturk/Shutterstock.com

Poorest Countries in Asia

20. Mongolia

GDP Per Adult in 2021: $7,178

Mongolia, a landlocked nation in East Asia, shares its borders with Russia to the north and China to the south. The capital city of Ulaanbaatar serves as the largest city in the country and is home to approximately half of its population. Mongolia holds membership in several international organizations, including the United Nations, Asia Cooperation Dialogue, G77, Asian Infrastructure Investment Bank, Non-Aligned Movement, and acts as a global partner to NATO. In 1997, Mongolia became a member of the World Trade Organization and is actively pursuing opportunities to enhance its involvement in regional economic and trade alliances. As of 2021, Mongolia remained one of the poorest Asian nations, with GDP per adult coming in at $7,178.

Magnolia has not yet generated companies that can rival the success of market leaders like Alibaba Group Holding Limited (NYSE:BABA), Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), and Infosys Limited (NYSE:INFY).

19. Armenia

GDP Per Adult in 2021: $6,395

Armenia, officially known as the Republic of Armenia, is a landlocked country located in the Armenian Highlands in Western Asia. It is considered a developing nation with an economy primarily focused on industrial production and extracting minerals. Armenia has aligned itself with Europe in many geopolitical aspects and is a member of various European organizations such as the Council of Europe, the Eastern Partnership, Eurocontrol, the Assembly of European Regions, and the European Bank for Reconstruction and Development. Additionally, Armenia is part of several regional groups in Eurasia, including the Asian Development Bank, the Collective Security Treaty Organization, the Eurasian Economic Union, and the Eurasian Development Bank. Armenia is one of the poorest Asian countries, with GDP per adult of $6,395.

18. Philippines

GDP Per Adult in 2021: $5,580

The Republic of the Philippines is a country composed of multiple islands in Southeast Asia. It is categorized as an emerging market and a recently industrialized nation, undergoing a shift from an agricultural economy to one centered on services and manufacturing. The Philippines possesses diverse natural resources and is globally recognized for its significant level of biodiversity. In 2021, the country’s GDP per adult came in at $5,580, categorizing it as one of the poorest Asian countries.

17. Sri Lanka

GDP Per Adult in 2021: $5,555

Sri Lanka, known officially as the Democratic Socialist Republic of Sri Lanka, is an island nation situated in South Asia. While Sri Lanka is classified as a developing country, it is currently facing an economic crisis characterized by the devaluation of its currency, increasing inflation, and a humanitarian emergency caused by a severe scarcity of essential goods. It is one of the poorest Asian countries based on GDP per capita as of 2021.

16. Bhutan

GDP Per Adult in 2021: $4,696

Bhutan, officially known as the Kingdom of Bhutan, is a landlocked nation located in South Asia. Bhutan holds membership in various international organizations including the Climate Vulnerable Forum, the Non-Aligned Movement, BIMSTEC, the IMF, the World Bank, UNESCO, and the World Health Organization. The issue of melting glaciers, a consequence of climate change, is an escalating concern in Bhutan. As of 2021, it remains one of the poorest Asian countries, with GDP per adult amounting to $4,696.

15. Laos

GDP Per Adult in 2021: $4,364

Laos, known as the Lao People’s Democratic Republic, is a country located in Southeast Asia without access to the sea. Vientiane serves as its capital and biggest city. Laos is affiliated with several international organizations, including the Asia-Pacific Trade Agreement, ASEAN, East Asia Summit, La Francophonie, and the World Trade Organization. It is a socialist republic with a single ruling party, the Lao People’s Revolutionary Party. Various non-governmental organizations have consistently criticized Laos for its inadequate human rights record, pointing to frequent instances of torture, limitations on civil liberties, and mistreatment of minority groups. It is one of the poorest Asian countries, with GDP per capita of $4,364.

14. Vietnam

GDP Per Adult in 2021: $4,186

Vietnam, officially known as the Socialist Republic of Vietnam, is situated in Southeast Asia. Hanoi serves as its capital, while Ho Chi Minh City is its largest city. Despite being a developing nation with a lower-middle-income economy, Vietnam has experienced rapid economic growth and is considered one of the fastest-growing economies in the 21st century. However, Vietnam faces significant challenges in areas such as corruption, censorship, and human rights. It ranks poorly in international assessments of civil liberties, freedom of the press, and the rights of religious and ethnic minorities. Vietnam is one of the poorest Asian countries as of 2021.

13. Timor-Leste

GDP Per Adult in 2021: $3,336

East Timor, officially known as Timor-Leste, is a Southeast Asian country with a semi-presidential system of government. The elected president shares power with a prime minister appointed by the National Parliament. While the national government holds significant authority, local leaders also have informal influence. Timor-Leste emphasizes international cooperation and maintains membership in the Community of Portuguese Language Countries. It is an observer of the Pacific Islands Forum and has applied for ASEAN membership. Despite its natural resources, particularly oil, the country continues to face economic challenges and relies heavily on foreign aid. In 2021, Timor-Leste’s GDP per adult stood at $3,336, making it one of the poorest Asian nations.

12. Bangladesh

GDP Per Adult in 2021: $3,333

Bangladesh, known officially as the People’s Republic of Bangladesh, is a nation located in South Asia. The capital city of Dhaka serves as the political, financial, and cultural hub of the country. Chittagong, the second-largest city, boasts the busiest port along the Bay of Bengal. Despite being a middle power in the Indo-Pacific region, Bangladesh encounters various obstacles, including poverty, corruption, and the impacts of climate change. It is one of the poorest Asian countries, with GDP per adult in 2021 rounding up to $3,333.

Bangladesh has attracted the establishment of subsidiaries or branches by various multinational companies to engage in business activities. The country presents favorable opportunities for the likes of Alibaba Group Holding Limited (NYSE:BABA), Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), and Infosys Limited (NYSE:INFY) to establish their presence and conduct operations.

11. Uzbekistan

GDP Per Adult in 2021: $3,063

Uzbekistan, officially known as the Republic of Uzbekistan, is a landlocked country situated in Central Asia. It follows a secular system of governance with a presidential constitutional government. The Uzbek economy is undergoing a gradual shift towards a market-based system, and its foreign trade policy is focused on import substitution. Uzbekistan holds a significant position as a major producer and exporter of cotton. Thanks to its extensive power-generation infrastructure from the Soviet era and abundant natural gas resources, Uzbekistan has emerged as one of the leading electricity producers in Central Asia. However, its GDP per capita remained low in 2021, at $3,063, making it one of the poorest Asian nations.

10. Cambodia

GDP Per Adult in 2021: $2,538

Cambodia, known officially as the Kingdom of Cambodia, is located in Southeast Asia on the southern Indochinese Peninsula. It is classified as a least developed country by the United Nations. Despite having a lower per capita income compared to its neighboring nations, which categorizes it as a poor Asian country, Cambodia boasts one of the most rapidly growing economies in Asia. The agricultural sector continues to be the primary driver of the economy, while sectors such as textiles, construction, garments, and tourism have experienced significant growth, attracting increased foreign investment and fostering international trade.

9. Pakistan

GDP Per Adult in 2021: $2,366

Pakistan, officially known as the Islamic Republic of Pakistan, is situated in South Asia. It is considered a middle power nation, possessing nuclear weapons and belonging to the category of emerging and growth-leading economies. Throughout its history since gaining independence in 1947, Pakistan has witnessed periods of notable economic and military advancement, as well as periods marked by political and economic instability. The country still grapples with challenges such as poverty, illiteracy, corruption, and terrorism. Based on GDP per adult as of 2021, Pakistan is one of the poorest Asian countries.

8. Kyrgyzstan

GDP Per Adult in 2021: $2,126

Kyrgyzstan, also known as the Kyrgyz Republic, is a landlocked nation located in Central Asia. Its capital and largest city is Bishkek. Throughout its history, the country has faced persistent challenges such as ethnic conflicts, uprisings, economic difficulties, transitional governments, and political disputes. Kyrgyzstan is classified as a developing country, and its economy is in a state of transition. It heavily relies on deposits of gold, coal, and uranium for its economic activities. In 2021, the country’s GDP per capita came in at $2,126, making it one of the poorest countries in Asia.

7. Yemen

GDP Per Adult in 2021: $2,073

Yemen, known officially as the Republic of Yemen, is located in Western Asia. Its designated capital and largest city is Sanaa. Beginning in 2011, Yemen has faced a prolonged period of political turmoil triggered by widespread street protests addressing issues such as poverty, unemployment, genocide, and corruption. This crisis has further exacerbated Yemen’s already precarious human rights situation and war. It is one of the poorest Asian countries, with GDP per adult coming in at $2,073.

6. Myanmar

GDP Per Adult in 2021: $1,973

Myanmar, officially known as the Republic of the Union of Myanmar, is situated in Southeast Asia. The nation possesses abundant natural resources, including jade, gems, oil, natural gas, teak, and various minerals. Additionally, Myanmar has significant potential for renewable energy, particularly solar power, surpassing other countries in the Great Mekong Subregion. However, Myanmar has faced enduring challenges such as instability, factional violence, corruption, inadequate infrastructure, and a legacy of colonial exploitation that has hindered human development. As a result, Myanmar ranks among the least developed countries in the world. In 2021, its GDP per capita stood at $1,973, making it one of the poorest countries in Asia.

Click to continue reading and see 5 Poorest Countries in Asia.