In this article, we discuss the 20 poorest countries in Europe. If you want to see the top poorest countries in this region, check out 5 Poorest Countries in Europe.
As per Eurostat’s findings, approximately 21.7% of the population in the European Union (EU), amounting to about 95.4 million people, faced the risk of poverty or social exclusion in 2021. The findings showed that women, young adults, individuals with limited educational qualifications, and, more specifically, unemployed people were at a greater risk of poverty or social exclusion. In the European Union, although the probability of employed people facing poverty or social exclusion stood at 11.1%, and that of retired persons was 18.6%, for unemployed and other idle individuals, the risk of poverty or social exclusion stood at 64.5% and 42.3%, respectively. Among the nations within the EU, Romania, Bulgaria, and Greece exhibited the highest percentages of individuals identified as facing the risk of poverty. Eurostat reported that families with dependent children were more likely to face the threat of poverty or social exclusion at 22.5%, compared to families without dependents at 20.9%.
According to Euronews, compared to the general population, there is a greater risk of young Europeans falling victim to poverty. In 2021, data indicated that 20% of individuals in the age group of 15 to 29 faced a risk of poverty. Moreover, the overall at-risk-of-poverty rate for the entire population of the EU was recorded at 17%. In terms of the disparity between at-risk young individuals and the general population, Denmark exhibited the most significant divide, with 25.6% of young people facing risks compared to 12.3% of the overall population. Sweden followed closely behind Denmark, with a margin of nearly nine percentage points. Eurostat explained this indicator in the following words:
“It doesn’t necessarily imply a low standard of living, and measures the share of people that have disposable income below the poverty threshold.”
A World Economic Forum report noted that approximately 7% of the population in the European Union faced difficulties in maintaining adequate heating in their homes during the year 2021. This was because Europe faced an energy shortage which resulted in an increase in heating bills. Fuel poverty had the most impact on Bulgaria, with Lithuania and Cyprus closely trailing behind. Similarly, in the United Kingdom, one in three individuals faced the risk of encountering energy poverty during the winter season.
Moreover, Save the Children reported that in 2021, the European Union nations saw an increase of over 200,000 in the number of children on the verge of poverty, pushing the overall number of children likely to face poverty to more than 19.6 million. Factors such as the COVID-19 pandemic, high cost of living, and the climate crisis caused the number of families and children facing poverty to escalate at an unnerving pace. According to the AROPE (At Risk of Poverty and/or Exclusion) indicator, Spain and Romania emerged as the nations with the most elevated proportions, 33.4% and 41.5% respectively, of children at risk of experiencing poverty or social exclusion. During 2022, Romania witnessed a remarkable surge of 98% in expenses. However, 40% of households faced a decline in income, compelling them to adopt substantial cost-cutting measures. The report highlighted that the most vulnerable children in this situation were asylum-seekers, those with migrant backgrounds, and undocumented children.
Ylva Sperling, Save the Children Europe Director, stated:
“No child should have to go to school on an empty stomach, worry about their parent’s job or live in a household that’s cold. Yet, the impact of Europe’s many crises makes eating or heating no longer a choice for many families and deprives children of the essentials they need for their development and well-being.”
According to the European Central Bank, the Russia-Ukraine war devastated the worldwide economy. The conflict affected the food and energy markets in particular, causing a decrease in supply and an unusual increase in prices. The EU has been particularly vulnerable to the economic impact of the Russia-Ukraine conflict, compared to other regions. The United Nations’ “World Economic Situation and Prospects 2023” report estimated the huge losses endured by the economy of Ukraine, noting that the country’s economy experienced a decrease of over 30% in 2022.
In October 2022, the New York Times observed that after Russia’s invasion of Ukraine, various global companies, like McDonald’s Corporation (NYSE:MCD), Shell plc (NYSE:SHEL), and PepsiCo, Inc. (NASDAQ:PEP) were left facing the difficulty of unraveling complex agreements in Russia. These companies had established relationships with the country over several decades, making the situation particularly complex. Upon being pressurized by consumers and investors, multiple Western companies decided to fully exit Russia. Adidas, for example, decided to discontinue sales in the country, despite having nearly 500 stores in Russia and the previous Soviet states. This also contributed to the issue of poverty in Europe and may have long-term implications as well. In this article, we discuss the poorest European nations.
Our Methodology
To identify the poorest countries in Europe, we examined data from Credit Suisse’s Global Wealth Databook 2022, specifically focusing on 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 Europe based on this metric, ranking the list in descending order of GDP per adult. It is important to acknowledge that some of these countries may appear relatively prosperous because Europe is generally a wealthy continent.
Nevertheless, poverty encompasses a wide range of factors, including the availability of essential needs such as food, clean water, healthcare, education, housing, and social services. To obtain a more comprehensive understanding of poverty in a country, it is vital to consider multiple indicators and measures. These aspects cannot be fully captured by GDP per capita alone.
Poorest Countries in Europe
20. Lithuania
GDP per Adult in 2021: $29,276
Lithuania, recognized as the Republic of Lithuania, is a nation located in the Baltic region of Europe. The capital and largest city of Lithuania is Vilnius. The country holds membership in various international organizations, including the European Union, the Council of Europe, the eurozone, the Nordic Investment Bank, the Schengen Agreement, NATO, and the OECD. Additionally, Lithuania actively participates in the regional cooperation format known as the Nordic-Baltic Eight (NB8). With GDP per adult of $29,276 as of 2021, Lithuania is categorized as one of the poorest countries in Europe as per Credit Suisse.
19. Portugal
GDP per Adult in 2021: $28,700
Portugal, officially the Portuguese Republic, is situated in southwestern Europe on the Iberian Peninsula. Lisbon is the capital city and holds the highest population in Portugal. The country is one of the oldest nations in Europe, and its land has been a witness to continuous settlements, invasions, and conflicts dating back to ancient times. Portugal is an active member of many international organizations, including the United Nations, the European Union, and the Council of Europe (CoE). Additionally, Portugal played a foundational role in establishing NATO, the OECD, the Eurozone, and the Community of Portuguese Language Countries. Portugal also hosts a number of widely recognized multinational corporations, including McDonald’s Corporation (NYSE:MCD), Shell plc (NYSE:SHEL), and PepsiCo, Inc. (NASDAQ:PEP). However, it falls under the category of the poorest countries in Europe, with GDP per adult of $28,700 as of 2021.
18. Latvia
GDP per Adult in 2021: $25,657
Latvia, officially referred to as the Republic of Latvia, is a Northern European country situated in the Baltic region. Its largest city and capital is Riga. Latvia holds membership in several prominent international organizations, including the European Union, NATO, Eurozone, the Council of Europe, the United Nations, the Council of the Baltic Sea States, the Nordic-Baltic Eight, the International Monetary Fund, the Nordic Investment Bank, the Organization for Economic Co-operation and Development, the Organization for Security and Co-operation in Europe, and the World Trade Organization. In terms of economic status, Latvia is classified as one of the poorest countries in Europe, with GDP per adult of $25,657 in 2021.
17. Slovakia
GDP per Adult in 2021: $25,325
Slovakia, known officially as the Slovak Republic, is a landlocked nation situated in Central Europe. The capital and largest city of Slovakia is Bratislava, with Košice being the second largest city. The country holds membership in several prestigious international organizations, including the European Union, the Eurozone, the Schengen Area, the United Nations, NATO, CERN, the OECD, the WTO, the Council of Europe, the Visegrád Group, and the OSCE. Slovakia takes pride in being home to quite a few of the UNESCO World Heritage Sites. However, the country faces challenges in addressing regional disparities in wealth and employment. In the year 2021, with GDP per adult of $25,325, Slovakia was classified as one of the poorest countries in Europe.
16. Greece
GDP per Adult in 2021: $24,534
Greece, officially referred to as the Hellenic Republic, is located in Southeastern Europe, with Athens serving as both its capital and largest city. The country is a member of a number of international organizations, including the UN, the OECD, and the Council of Europe. In 2021, the GDP per adult of Greece stood at $24,534, categorizing it as one of the poorest countries in Europe.
15. Hungary
GDP per Adult in 2021: $23,831
Hungary is a landlocked nation situated in Central Europe. The country’s capital and largest city is Budapest. Hungary is an active member of various international organizations, including the Council of Europe, NATO, United Nations, World Health Organization, and World Trade Organization. Following the collapse of Austria-Hungary after World War I, Hungary experienced a turbulent interwar period and subsequently aligned with the Axis powers during World War II, resulting in significant damage and casualties. In 2021, Hungary’s GDP per adult stood at $23,831, placing it among the poorest countries in Europe.
14. Poland
GDP per Adult in 2021: $21,200
Poland, officially referred to as the Republic of Poland, is located in Central Europe. It is geographically divided into 16 administrative provinces known as voivodeships. Poland’s capital and largest city is Warsaw. The country’s takeover by Germany and the Soviet Union in 1939 signaled the beginning of World War II, which led to the Holocaust and caused the loss of millions of Polish lives. With GDP per adult of $21,200 as of 2021, Poland classifies as one of the poorest countries in Europe.
13. Croatia
GDP per Adult in 2021: $20,637
Croatia, known officially as the Republic of Croatia, is situated in a strategic location between Central and Southeast Europe. Its largest city, Zagreb, serves as a significant administrative division alongside twenty counties. Croatia is actively involved in numerous organizations such as the European Union, the Eurozone, and the United Nations. The war for independence in 1991 caused extensive harm to the country’s economic infrastructure, notably impacting the tourism sector. Croatia is classified as one of the poorest nations in Europe, with GDP per adult of $20,637 in 2021.
12. Romania
GDP per Adult in 2021: $18,685
Romania is a nation located along the intersection of Central, Eastern, and Southeastern Europe. Bucharest is the capital of Romania, and serves as its largest city as well. The country holds membership in a number of organizations, including the UN, the EU, and NATO. Romania experienced a decline in its economy after 1989 and the economy remained unstable for years after that. It is one of the poorest countries in Europe, with GDP per adult coming in at $18,685 in 2021.
11. Russia
GDP per Adult in 2021: $15,750
The Russian Federation extends across both Eastern Europe and Northern Asia. Moscow is both its capital and largest city. Russia is a member of various organizations. It holds permanent membership of the United Nations Security Council. Globally, Russia has one of the lowest rates of human rights, freedom of speech, and democracy. It is also faced with high levels of corruption. In 2021, Russia’s GDP per adult was $15,750, classifying it as one of the poorest countries in Europe.
Following the Russia-Ukraine conflict, renowned multinational corporations such as McDonald’s Corporation (NYSE:MCD), Shell plc (NYSE:SHEL), and PepsiCo, Inc. (NASDAQ:PEP) withdrew or suspended their operations in Russia, further straining the Russian economy.
10. Bulgaria
GDP per Adult in 2021: $14,491
The Republic of Bulgaria is positioned in Southeast Europe. The nation’s capital and largest city is Sofia. Bulgaria is a member of organizations such as the European Union, NATO, and the Council of Europe. It is a developing country. Bulgaria faces significant socioeconomic challenges due to prevalent corruption and the population of the country is gradually decreasing, indicating a demographic crisis. With GDP per adult of $14,491 as of 2021, Bulgaria is one of the poorest countries in Europe.
9. Montenegro
GDP per Adult in 2021: $12,231
Montenegro is located in Southeastern Europe. It is a member of several organizations including the UN, NATO, and the WTO. In 2008, Montenegro experienced an economic decline as a consequence of the Global Recession. The Montenegrin economy relies heavily on foreign direct investment (FDI), making it vulnerable to outside influence and excessive trade deficit. Montenegro is one of the poorest countries in Europe, with GDP per adult coming in at $12,231 in 2021.
8. Serbia
GDP per Adult in 2021: $11,538
Serbia, known officially as the Republic of Serbia, is a landlocked country located in Southeastern and Central Europe. Belgrade is the capital and the largest city of Serbia. Serbia is a member of various organizations such as the WTO, the UN, and the OSCE. It is one of the poorest countries in Europe, with GDP per adult of $11,538 as of 2021.
7. Belarus
GDP per Adult in 2021: $9,129
The Republic of Belarus is a landlocked country located in Eastern Europe. Minsk serves as both its capital and largest city. The destruction caused by military operations during World War II adversely affected Belarus, resulting in significant losses both in terms of population and economic resources. Belarus is a developing nation. Since its inception, the country has been a member of the United Nations and has also become part of various other organizations, such as the CIS and the CSTO. Despite its human development ranking being relatively high, Belarus continues to face economic challenges, resulting in it being one of the poorest countries in Europe, with GDP per adult of $9,129 in 2021.
6. Macedonia
GDP per Adult in 2021: $8,624
Macedonia, commonly known as North Macedonia, is a landlocked country positioned in Southeastern Europe. Its capital and largest city is Skopje. Macedonia is a member of multiple organizations, including the UN, NATO, and the World Bank. The rate of people facing financial difficulties is considerably high in North Macedonia. Economic development has been hindered by other factors as well, such as corruption and an inefficient legal structure. Macedonia, with GDP per adult of $8,624 as of 2021, is one of the poorest countries in Europe.
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Disclosure: None. 20 Poorest Countries in Europe is originally published on Insider Monkey.
