In this article, we will be taking a look at the 30 poorest countries in the world. To skip our detailed analysis, you can go directly to see the 5 Poorest Countries in the World.
Global Wealth and Inequality
Global wealth inequality has caused a rift for poor countries to improve their economies and enhance their wealth. Global inequality creates a lack of better business opportunities for poor economies. Countries with best distribution of wealth are some of the richest countries in the world. Poor countries have limited wealth and the distribution of wealth is uneven. As we mentioned earlier, global millionaires held almost half of net household wealth in 2022. The world’s richest 1% have captured two-thirds of all new wealth worth $42 trillion, generated since 2020. The rise in inflation and interest rates during 2022 and 2023 have led to a decrease in overall global wealth.
The total net private wealth plunged from $443.1 trillion in 2021 to $454.4 trillion in 2022, as reported by the Global Wealth Report 2023. Whereas, the wealth per adult fell from $81,520 per adult in 2021 to $84,718 per adult in 2022. The most affected regions in the world were North America and Europe, where the total wealth dropped by $10.9 trillion in 2022. Asia Pacific suffered a wealth loss of about $2.1 trillion.
Global Poverty
One of the main goals of the United Nations 2030 Agenda for Sustainable Development and Sustainable Development Goal (SDG) is to end extreme poverty. Multiple challenges impede global poverty reduction. As we have highlighted, widespread inequality, political instability, global conflicts, climate calamity, and other issues are barriers to the reduction of poverty.
According to the 2023 Multidimensional Poverty Index (MPI) report, 1.1 billion out of 6.1 billion people are poor across 110 countries. These 1.1 billion are expected to live in acute multidimensional poverty. Out of these 1.1 billion people, almost 730 million people live in middle-income countries and 387 million people live in low-income countries.
Among the 1.1 billion poor people, nearly half of them live in Sub-Saharan Africa. As per the report, Sub-Saharan Africa has a poor population of 534 million and South Asia has 389 million poor people. This indicates that nearly five out of six poor people reside in Sub-Saharan Africa or South Asia. Nepal, Afghanistan, and Tajikistan are some of the poorest countries in Asia. Burundi, Central African Republic, and Somalia are some of the poorest countries in Africa.
Poor economies can not even provide necessities to their citizens. Among the 1.1 billion poor people, 824 to 991 million people do not have adequate sanitation, housing, or cooking fuel. Gaps in years of schooling is a major problem across different regions. Excluding Europe and Central Asia, around half of the population in all regions do not have a single member of their family who has completed six years of schooling.
However, some countries have reduced their global MPI value. The MPI report finds that 25 countries halved their global MPI value within 15 years, based on an analysis of trends from 2000 to 2022. India has the most impressive stats with 415 million people overcoming poverty between 2005 and 2021. In China, nearly 69 million overcame poverty in just four years between 2010 and 2014. Among the most poor countries, Cambodia had a remarkable development with halving its MPI in 7.5 years between 2014 and 2022.
Companies Supporting Poor Economies
In poor countries, a small portion of companies play a massive role in the economy. There are narrow business opportunities in poor countries due to limited industries. Some of the poor countries in Africa have rich natural resources and companies have decent opportunities to explore businesses in the natural resources sector.
Mozambique is one of the poorest countries in Africa. Hidroeléctrica de Cahora Bassa, S.A. (BVM:HCB) is Mozambique’s pre-eminent hydropower generation company and supplies electricity in the country. Hidroeléctrica de Cahora Bassa, S.A. (BVM:HCB) plays a major role in Mozambique’s economy, supporting hydropower projects in the country. On October 16, Hidroeléctrica de Cahora Bassa, S.A. (BVM:HCB) signed an agreement with the International Finance Corporation (IFC) for the development of a large-scale photovoltaic generation plant of up to 400 megawatts in Mozambique. The plant is set to contribute to the country’s renewable energy production. As per the agreement, Hidroeléctrica de Cahora Bassa, S.A. (BVM:HCB) along with International Finance Corporation (IFC) will perform a pre-feasibility study for the installation of the plant. The company’s President of the Board of Directors, Tomás Matola, said:
“This agreement represents the implementation of HCB’s strategy of diversifying and expanding its generation capacity, in addition to minimizing the impact of reduced production during the rehabilitation and modernization of HCB’s South Central. Additionally, we plan to increase HCB’s generation capacity to around 4,000 MW by 2032.”
Myanmar Agro Exchange Public Co., Ltd. (YSX:MAEX) is Myanmar’s leading company that operates in the wholesale market and deals in agricultural commodities. On November 15, Myanmar Agro Exchange Public Co., Ltd. (YSX:MAEX) announced that it is initiating the Danyingone Wholesale Market project in Yangon. Myanmar Agro Exchange Public Co., Ltd. (YSX:MAEX) is expanding its Collector Market projects in Kalaw District and Pindaya District of Southern Shan State. The company intends to sell its agricultural products in the Danyingone Wholesale Market. The company expects the project to begin in Summer 2024.
Cafca Limited (ZSE:CAFCA) is the only cable manufacturer in Zimbabwe. The company’s primary market is Southern and Central Africa, though Cafca Limited (ZSE:CAFCA) has made exports to countries such as Uganda and Russia. On November 15, Cafca Limited (ZSE:CAFCA) announced its full-year results for 2023. The company’s basic earnings per share from continuing operations was ZWL 1,519.62, up from ZWL 232.44 year-over-year. Cafca Limited (ZSE:CAFCA) reported revenue of ZWL 164 billion in 2023 compared to ZWL 75 billion in 2022. Cafca Limited (ZSE:CAFCA) is looking forward to improving its export footprints and utility business to attract more mining sector customers.
Industries have always played a big role in improving economies all over the world. Now let’s have a look at the poorest countries in the world.
30 Poorest Countries in the World
Our Methodology
We have ranked the poorest countries in the world based on their GDP per capita. We have only taken countries with a minimum population of 10 million. We sourced data from the International Monetary Fund (IMF) that lists global GDP per capita by country. Data on population by country and GDP (PPP) by country was also sourced from the IMF database. As a simple definition, PPP is calculated by subtracting price differences and nominal changes in the local currency and the US Dollar.
For the countries with similar GDP per capita, we ranked them based on their GDP (PPP), and the country with a higher GDP (PPP) was ranked higher on the list.
30 Poorest Countries In The World
30. Nigeria
GDP Per Capita: $6,150
Population: 222.18 Million
Nigeria has a population of 222.18 million and a GDP of $1.37 trillion. Nigeria with a GDP per capita of $6,150 is the least poorest country in the world on our list.
29. Cambodia
GDP Per Capita: $6,090
Population: 16.15 Million
Cambodia is a Southeast Asian nation with a GDP of $98.32 billion. The country has a population of 16.15 million and a GDP per capita of $6,090. Cambodia ranks 29th among the poorest countries in the world.
28. Tajikistan
GDP Per Capita: $5,360
Population: 10.01 Million
Located in Central Asia, Tajikistan has a GDP of $53.68 billion. With a population of 10.01 million and a GDP per capita of $5,360, Tajikistan is one of the poorest countries in the world.
27. Myanmar
GDP Per Capita: $5,120
Population: 54.21 Million
Myanmar is a Southeast Asian country with a GDP of $277.77 billion. The country has a population of 54.21 million and a GDP per capita of $5,120. Myanmar ranks among the poorest countries in the world.
26. Nepal
GDP Per Capita: $4,930
Population: 30.56 Million
North of India, Nepal is located in South Asia. Nepal has a GDP of $150.8 billion and a GDP per capita of $4,930. The country makes it to our list of the poorest countries in the world.
25. Cameroon
GDP Per Capita: $4,660
Population: 28.61 Million
Located on the Gulf of Guinea, Cameroon is a Central African country. Cameroon has a GDP of $133.34 billion and a GDP per capita of $4,660.
24. Senegal
GDP Per Capita: $4,320
Population: 18.16 Million
Senegal is a West African country with a diversified economy. The country has a GDP of $78.55 billion and a GDP per capita of $4,320. Senegal ranks 24th on our list of the poorest countries in the world.
23. Benin
GDP Per Capita: $4,310
Population: 13.76 Million
Benin is a West African country with a GDP of $59.24 billion and a GDP per capita of $4,310. Benin ranks among the poorest countries in the world.
22. Zambia
GDP Per Capita: $4,070
Population: 20.57 Million
Zambia is located in the southern part of Africa. The country has a GDP of $83.69 billion and a GDP per capita of $4,070. Zambia is one of the poorest countries in the world.
21. Ethiopia
GDP Per Capita: $3,720
Population: 105.75 Million
Ethiopia is one of the largest economies among the poorest countries in the world. The country has a GDP of $393.3 billion and a GDP per capita of $3,720.
20. Sudan
GDP Per Capita: $3,600
Population: 47.9 Million
Sudan is a country located in North Africa. The country has a GDP of $172.65 billion and a GDP per capita of $3,600. Sudan ranks 20th among the poorest countries in the world.
19. Tanzania
GDP Per Capita: $3,600
Population: 63.34 Million
Located in East Africa, Tanzania is a large and underdeveloped economy with a GDP of $227.73 billion. With a GDP per capita of $3,600, Tanzania makes it to our list of the poorest countries in the world.
18. Papua New Guinea
GDP Per Capita: $3,400
Population: 12.28 Million
Papua New Guinea is located in the southwestern Pacific and covers the area of the eastern half of New Guinea. The country has a GDP of $41.79 billion and a GDP per capita of $3,400. Ranked 18th on our list, Papua New Guinea is one of the poorest countries in the world.
17. Guinea
GDP Per Capita: $3,240
Population: 15.04 Million
Guinea is a country in West Africa with a GDP of $48.75 billion. The country has a population of 15.04 million. With a GDP per capita of $3,240, Guinea ranks among the poorest countries in the world.
16. Uganda
GDP Per Capita: $3,220
Population: 45.05 Million
Located in East Africa, Uganda is a landlocked country. Uganda has a GDP of $145.16 billion and a GDP per capita of $3,220.
15. Haiti
GDP Per Capita: $3,190
Population: 12.23 Million
Haiti is a Caribbean country with a small and underdeveloped economy. The country has a population of 12.23 million and a GDP of $38.95 billion. With a GDP per capita of $3,190, Haiti is one of the poorest countries in the world.
14. Rwanda
GDP Per Capita: $3,140
Population: 13.5 Million
Rwanda is a small state in East Africa. The country has a GDP of $42.35 billion and a GDP per capita of $3,140. Rwanda makes it to our list of the poorest countries in the world.
13. Zimbabwe
GDP Per Capita: $2,750
Population: 16.16 Million
Zimbabwe is a country in southern Africa and has a GDP of $44.45 billion. With a GDP per capita of $2,750, Zimbabwe is ranked 13th on our list of the poorest countries in the world.
12. Burkina Faso
GDP Per Capita: $2,680
Population: 23.41 Million
Located in West Africa, Burkina Faso has a GDP of $62.79 billion. The country has a population of 23.41 million and a GDP per capita of $2,680. Burkina Faso ranks among the poorest countries in the world.
11. Mali
GDP Per Capita: $2,640
Population: 23.35 Million
Mali is also located in West Africa with almost a similar economy to Burkina Faso. The country has a GDP of $61.63 billion and a GDP per capita of $2,640. Mali is ranked 11th among the poorest countries in the world.
10. Yemen
GDP Per Capita: $2,050
Population: 34.07 Million
Yemen is one of the poorest Arab countries. Yemen has a GDP of $69.96 billion and a GDP per capita of $2,050.
9. Somalia
GDP Per Capita: $2,000
Population: 16.05 Million
Somalia is situated in East Africa. The country has a population of 16.05 million and a GDP of $32.08 billion. With a GDP per capita of $2,000, Somalia is ranked 9th among the poorest countries in the world.
8. Madagascar
GDP Per Capita: $1,910
Population: 29.77 Million
Officially the Republic of Madagascar is located on the southeastern coast of Africa. The country has a GDP of $56.75 billion and a GDP per capita of $1,910. Madagascar makes it to our list of the poorest countries in the world.
7. Chad
GDP Per Capita: $1,810
Population: 17.92 Million
Chad is a landlocked country located in Central Africa. The country has a GDP of $32.38 billion and a GDP per capita of $1,810. Chad ranks seventh among the poorest countries in the world.
6. Malawi
GDP Per Capita: $1,670
Population: 22.73 Million
Located in East Africa, Malawi has a GDP of $37.92 billion. With a population of 22.73 million and a GDP per capita of $1,670, Malawi is one of the poorest countries in the world.
Click to continue reading and see the 5 Poorest Countries in the World.
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Disclosure: None. 30 Poorest Countries in the World is originally published at Insider Monkey.
