In this article, we will be taking a look at the 30 countries with the lowest GDP per capita in the world. To skip our detailed analysis, you can go directly to see the 5 Countries With the Lowest GDP Per Capita in the World.
Global Economic Outlook
The predictability of the global economy is difficult at the moment with various economic and geopolitical issues such as inflation and higher interest rates in the US and EU countries, the property market crisis and deflation in China, the Russia-Ukraine war, and the conflict in the Middle East, are among the major occurrences. On one hand, there are countries with high inflation rates, then on the other hand, there are countries with deflation or dangerously low inflation. One of the biggest economic debates right now is the US Federal Reserve potentially cutting the interest rates in the second half of 2024. The slowing of inflation in the US has been unexpectedly smooth so far, with mild economic growth and not a drastic increase in the unemployment rate. However, price increases have been a question mark as global supply chain disruptions increase following the Yemeni Houthi attacks in the Red Sea.
On March 19, The New York Times reported that price increases have continued to hover around 3.2% for five months now. That raises questions about the approach of the Fed against fighting inflation. According to Vanguard’s global chief economist, Joseph Davis, the Fed should not be in a hurry to cut rates as the economy has held up better than expected. Davis further said, “We have a growing probability that they don’t cut rates at all this year”. However, investors are a little optimistic about the Fed keeping rates at their current 5.3% through 2024. The chief economist at KPMG US, Diane Swonk, pointed out that the Fed officials are likely to debate on whether inflation can continue to cool in the upcoming meeting on March 20, 2024. Swonk addressed the key point stating:
“The worry is that the low-hanging fruit associated with a healing of supply chains and drop in goods prices has been plucked, while a floor may be forming under service sector prices.”
Investors expect central banks to cut rates three times to around 4.6% by the end of 2024. On March 14, CNBC reported that the European Central Bank (ECB) chief economist, Philip Lane, said that the ECB must take time to get interest rate cuts right. Lane believes that the central bank will have a clearer picture of inflationary pressures in June 2024. During the March 2024 meeting, the ECB held rates and lowered the inflation projection for 2024 to 2.3% from the previous forecast of 2.7%. Here is what Lane told CNBC’s Steve Sedgwick:
“A lot of evidence is accumulating, but what’s also fair to say is that the transition from this holding phase, we’ve been on hold since last September since a substantial hiking cycle, we do have to take our time to get that right, from holding to dialing back restrictions.”
On the other hand, Japan’s central bank has increased its interest rate for the first time in 17 years. On March 19, Reuters reported that the Bank of Japan (BOJ) ended eight years of negative interest rates, making a historic shift from decades of aggressive monetary easing. Despite the hike in the interest rate, Japan’s interest rate is kept around zero to support the fragile recovery as the central bank remains cautious about further rises in borrowing costs.
With all the economic and geopolitical challenges, global growth is projected at 3.1% in 2024 and 3.2% in 2025, according to the IMF’s January 2024 World Economic Outlook. The forecast for 2024 and 2025 is below the historical average growth rate of 3.8% from 2000 to 2019. As per the IMF, the global headline inflation is projected to fall to 5.8% in 2024 and 4.4% in 2025. The growth for advanced economies is expected to decline from 1.6% in 2023 to 1.5% in 2024 before jumping to 1.8% in 2025. The Euro area is projected to recover from its low growth rate of 0.5% in 2023 to 0.9% in 2024 and 1.7% in 2025. The Euro area is one of the most impacted regions in the world with relatively high exposure to the war in Ukraine. While, growth in emerging and developing Europe is expected to jump from 2.7% in 2023 to 2.8% in 2024, before it drops again to 2.5% in 2025. The Middle East and Central Asia is expected to improve its growth rate from 2% in 2023 to 2.9% in 2024 and 4.2% in 2025. In sub-Saharan Africa, the growth forecast for 2024 is around 3.8%, and 4.1% in 2025.
Most of the countries with the lowest GDP per capita in the world are based out of sub-Saharan Africa. The African region holds a lot of potential, and Egypt and Nigeria will be among the largest economies as per the IMF’s GDP forecast for 2030 by country.
Key Players in Africa’s Emerging Market
Most of the companies in Africa that have a huge influence on the regional economy belong to the energy and mining sectors. Hidroeléctrica de Cahora Bassa, S.A. (BVM:HCB), Barrick Gold Corporation (NYSE:GOLD) and Sibanye Stillwater Limited (NYSE:SBSW) are some of the top players in Africa.
Barrick Gold Corporation (NYSE:GOLD) is one of the largest gold producers in Africa and one of the leading gold mining companies in the world. On March 10, Barrick Gold Corporation (NYSE:GOLD) announced that its Loulo-Gounkoto complex in Mali has contributed over $1 billion to the Malian economy over the past 12 months. The Loulo-Gounkoto complex consists of Mali’s largest gold mines and the complex continues to generate consistent revenue. Barrick Gold Corporation (NYSE:GOLD) expects the complex to be on track to achieve production guidance for the current quarter and full year 2024.
Sibanye Stillwater Limited (NYSE:SBSW) is one of the top metals and mining companies in the world. On March 18, the company reported that all conditions to proceed with the acquisition of Reldan have been concluded. Sibanye Stillwater Limited (NYSE:SBSW) has acquired the leading sustainable precious metals refiner for $155.9 million. Here is what the company’s CEO, Neal Froneman, said:
“We are embracing resource stewardship through secondary mining and recycling. The addition of Reldan, at an opportune time in the recycling business cycle, is set to unlock significant value for the Group. Reldan’s commitment to responsible urban mining and sustainable waste management resonates with Sibanye-Stillwater’s ethos, aligning closely with our business purpose to safeguard global sustainability through our metals.”
Hidroeléctrica de Cahora Bassa, S.A. (BVM:HCB) is one of the largest independent energy producers in Africa. On January 11, Hidroeléctrica de Cahora Bassa, S.A. (BVM:HCB) announced that the company ended the year 2023 with an electricity production of approximately 16,057.55 GWh, surpassing the projected estimates by 12.36%. This is the company’s highest annual production in the last five years.
With this context, let’s take a look at the 30 countries with the lowest GDP per capita in the world.
30 Countries With the Lowest GDP Per Capita in the World
Our Methodology
To compile our list of the countries with the lowest GDP per capita in the world, we shortlisted the countries with the lowest GDP per capita from the International Monetary Fund (IMF) database, updated as of 2024. We took GDP per capita from the World Bank database for the countries with unavailability of data on the IMF database, which include Sri Lanka, Syria, and Afghanistan. We have ranked the countries in descending order of their GDP per capita. We have also mentioned the GDP (PPP) of countries, as of 2024, and the data is sourced from the IMF.
30 Countries With the Lowest GDP Per Capita in the World
30. Guinea
GDP Per Capita: $3,415
Guinea is a West African country and has a GDP of $52.65 billion. With a GDP per capita of $3,415, Guinea ranks 30th among the countries with the lowest GDP per capita in the world.
29. Uganda
GDP Per Capita: $3,383
Uganda is situated in East Africa and has a GDP per capita of $3,383. Uganda has a GDP of around $156.96 billion and ranks among the countries with the lowest GDP per capita.
28. Sri Lanka
GDP Per Capita: $3,354
Sri Lanka has a GDP per capita of $3,354, as of 2022, and it is one of the poorest countries in the world.
27. Lesotho
GDP Per Capita: $3,344
Lesotho has a GDP of $7.24 billion and a GDP per capita of $3,344. Lesotho ranks 27th among the countries with the lowest GDP per capita in the world.
26. Rwanda
GDP Per Capita: $3,343
Rwanda is an African country with a GDP of around $46.33 billion. Rwanda has a GDP per capita of $3,343.
25. Haiti
GDP Per Capita: $3,260
Haiti has a GDP of $40.39 billion and a GDP per capita of $3,260. Haiti ranks 25th among the countries with the lowest GDP per capita in the world.
24. Guinea-Bissau
GDP Per Capita: $3,247
Guinea-Bissau has a GDP of $6.42 billion and is one of Africa’s poorest countries.
23. Gambia
GDP Per Capita: $2,992
The Gambia is another poor country in Africa and has a GDP of around $8.15 billion. The Gambia has a GDP per capita of $2,992.
22. Vanuatu
GDP Per Capita: $2,983
Vanuatu is a country situated in the South Pacific Ocean and has a GDP per capita of $2,983. Vanuatu has a GDP of $1.03 billion, as of 2024.
21. Togo
GDP Per Capita: $2,910
Togo is an African country with a GDP of $27.03 billion. Togo has a GDP per capita of $2,910.
20. Zimbabwe
GDP Per Capita: $2,857
Zimbabwe is ranked 20th among the countries with the lowest GDP per capita in the world. Zimbabwe has a GDP of $47.09 billion.
19. Burkina Faso
GDP Per Capita: $2,840
Burkina Faso is located in the western part of Africa and has a GDP of $68.35 billion. The country has a GDP per capita of $2,840. Burkina Faso ranks among the countries with the lowest GDP per capita in the world.
18. Mali
GDP Per Capita: $2,740
Mali has a GDP of $66.05 billion and a GDP per capita of around $2,740. Mali ranks 18th among the countries with the lowest GDP per capita in the world.
17. Solomon Islands
GDP Per Capita: $2,464
The Solomon Islands consists of several islands and has a GDP of $1.87 billion, as of 2024.
16. Kiribati
GDP Per Capita: $2,457
Kiribati is a small economy and has a GDP of around $310 million. Kiribati has a GDP of $2,457 and is one of the countries with the lowest GDP per capita.
15. Sierra Leone
GDP Per Capita: $2,201
Sierra Leone ranks 15th among the countries with the lowest GDP per capita in the world. Sierra Leone has a GDP of around $19.05 billion.
14. Yemen
GDP Per Capita: $2,095
Yemen is one of the poorest countries in the world having a GDP per capita of $2,095.
13. Somalia
GDP Per Capita: $2,062
Somalia has a GDP of $34.02 billion and a GDP per capita of $2,062. Somalia ranks among the countries with the lowest GDP per capita.
12. Madagascar
GDP Per Capita: $1,988
Madagascar is an island country located in Africa and has a GDP of around $60.83 billion. Madagascar has a GDP per capita of $1,988 and is one of the poorest countries in the world.
11. Liberia
GDP Per Capita: $1,882
Liberia is another African country with one of the lowest GDP per capita in the world. Liberia has a GDP of around $10.47 billion.
10. Chad
GDP Per Capita: $1,863
Chad has a GDP of $34.35 billion and a GDP per capita of $1,863. Chad ranks 10th among the countries with the lowest GDP per capita in the world.
9. Niger
GDP Per Capita: $1,730
Niger is a neighboring country of Chad and has a GDP of around $48.57 billion. The country has a GDP per capita of $1,730, as of 2024.
8. Malawi
GDP Per Capita: $1,712
Malawi has a GDP of around $40.04 billion. With a GDP per capita of $1,712, Malawi ranks among the countries with the lowest GDP per capita.
7. Mozambique
GDP Per Capita: $1,654
Mozambique is a neighboring country of Malawi and has a GDP of around $57.65 billion. The country is one of the countries with the lowest GDP per capita, recorded at $1,654, as of 2024.
6. Democratic Republic of the Congo
GDP Per Capita: $1,565
Democratic Republic of the Congo is one of the poorest countries in Africa and has a GDP of around $161.53 billion. Democratic Republic of the Congo has a GDP per capita of $1,565.
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