In this article, we shall discuss the 50 poorest countries based on GDP per capita (2023 PPP). To skip our detailed analysis of global poverty and the efforts underway to alleviate poverty rates and meet the climate challenges, go directly and see 10 Poorest Countries Based on GDP Per Capita (2023 PPP).
The Economic Impact of Rising Poverty: An Overview
According to a report by the UNDP, there are multitudes of challenges which impede the road to poverty reduction some of the poorest countries based on GDP per capita, namely widespread income inequality, political and geopolitical instability and conflict, a burgeoning climate emergency, COVID-19 pandemic recovery and resultant inflationary constraints, and the skyrocketing costs of living crisis. There are commonalities and specifics which cloud the way these factors affect different the poorest countries based on GDP per capita. More than 20% of the global population is currently living in acute multidimensional poverty, with 485 million living in severe poverty across 110 countries, experiencing weighted deprivations ranging from 50-100%. More than half of the people living in multidimensional poverty are children under the age of 18 and nearly 84% of all poor people living in rural areas. Rural areas are marginally poorer than urban areas across the world. Understanding the concentration of poverty within populations is essential for appropriate policymaking. Roughly five out of six poor people live in Sub-Saharan Africa or South Asia. More than 65% of the remaining poor population are highly concentrated in five countries, namely China, Indonesia, Myanmar, Sudan, and Yemen. Across countries, the incidence, and therefore the intensity, of poverty ranges from less than 1% in 21 countries to over 50% in 22 countries, 19 of which are located in Sub-Saharan Africa.
In the United States, child poverty made an unprecedented surge in 2022 following the expiration of pandemic-era benefits, according to a report by Bloomberg. The report maintains that a supplemental measure of child poverty jumped to more than 12% in 2022. The metric is based on after-taxation income and comprises government-transfer payments like stimulus checks, which despite doubling with respect to an all time low in 2021, still remain below pre-pandemic levels. The latest figures released by the Census Bureau points to a worrying trend for families and cost-of-living continues to skyrocket due to inflationary pressures, expiration of stimulus payments, and increased costs of enhanced food and child-care programs. Due to these policies, numerous American citizens are retracting on much of the progress made during the pandemic, and is already a leading contributor in rising rates of family homelessness. Rising poverty in the United States also exacerbates a debt crisis in the poorest countries based on GDP per capita, according to another report by Bloomberg. By 2024, frontier markets in the developing world, like Bolivia, Ethiopia, Tunisia, and a dozen other countries which are either already in default or are trading in complete disregard to their balance of payments, are projected to repay more than $200 billion in bonds and other loans. This spells a worrying trend for poverty rates around the world, leading to companies like Mastercard Inc. (NYSE:MA), Nestle S.A. (OTC:NSRGY), and Microsoft Corporation (NASDAQ:MSFT) doubling down on their poverty alleviation initiatives. To read more on how these companies are alleviating poverty across the developing world, check out our coverage of World’s 50 Poorest Countries Based on Percentage of Population Below Poverty Line.
Harnessing Sustainability and Inclusion for Economic Empowerment: An Analysis
Growth, inclusion, and sustainability are often interconnected. On the sustainability end of the spectrum , the Paris Agreement laid out a framework to constrain temperature rise to below 2.0°C (and preferably to 1.5°C) relative to preindustrial levels. In accordance with the agreements, many countries, including some of the poorest countries based on GDP per capita have been pursuing net-zero emissions. On inclusion, despite the fact that the world has made commendable advances in reducing poverty over the decades, development economists and policymakers have been arguing for setting higher bars for living standards. According to the UN’s Sustainable Development Objectives, adequate living conditions entail nutrition, health, education, clean water, and access to energy. The concept of economic empowerment for countries and many companies leading the fight against multidimensional poverty like Mastercard Inc. (NYSE:MA), Nestle S.A. (OTC:NSRGY), and Microsoft Corporation (NASDAQ:MSFT) captures the United Nations’ aspirations.
The report highlights the instrumentality of this decade in determining the kind of world the next generation is likely to inherit. Without quicker and more sustainable progress on the SDGs, the next generation will lack the tools to excel in the jobs of the future, risking further exacerbation of already deteriorating poverty rates. According to McKinsey, the empowerment gap can be defined as the total boost in global consumption required to recognize and meet everyone’s basic needs by 2030, whilst the net zero investment gap can be defined as the total investment on low-emissions technologies needed by 2030, in addition to what is happening already. Since both these gaps cannot effectively be addressed instantaneously, the report presumes an upward progress over the decade requiring an equivalent of 8% of the global GDP annually, with substantial variations differing by region. Although this is a massive figure, companies like Mastercard Inc. (NYSE:MA), Nestle S.A. (OTC:NSRGY), and Microsoft Corporation (NASDAQ:MSFT) can make substantial investments in these areas and capitalize on new opportunities in some of the poorest countries based on GDP per capita, even under the current substandard policy prescriptions. Countries around the world are already investing significantly in the twin priorities, with more than 90% of the $1.4 trillion of global net-zero spending stemming from the public sector in 2020. Furthermore, nearly 23% of consumption by people below the economic empowerment line was upheld by public and social spending on in-kind transfers in 2020. To read more on how companies are facilitating economic empowerment in impoverished areas, check out our coverage of 40 Countries With the Highest Rates of Poverty.
The World Bank’s extreme poverty line was recently updated from $1.90 to $2.15 per person per day in PPP terms. But as an increased number of people surpass the poverty line in the poorest countries based on GDP per capita, the world needs a more holistic benchmark to trace progress towards a higher living standard. The report highlights the fact that when people rise meaningfully above poverty, many outcomes naturally improve, including but not limited to childhood mortality, life expectancy, education, and digital and financial inclusion. In this vein, the report suggests quantifying the higher bar by raising consumption to $12 per person per day as a baseline benchmark, with the line accounting for local norms and costs of food, housing, and energy in countries with higher levels on income.
Our Methodology
To compile our list of the 50 poorest countries based on GDP per capita (2023 PPP), we decided to use data from the International Monetary Front (IMF) that lists down global GDP per capita by country. We used Purchasing Power Parity (PPP) as a unit, which is the measure of the price of specific goods in different countries and is used to compare the absolute purchasing power of the countries’ currencies. We then ranked the countries by their GDP per Capita (PPP) from highest to lowest. The lower the GDP per capita, the poorer the country.
To sum it up, we ranked the 50 poorest countries based on GDP per capita (2023 PPP) based on data from the International Monetary Fund. By the way, Insider Monkey is an investing website that tracks the movements of corporate insiders and hedge funds. By using a similar consensus approach, we identify the best stock picks of more than 900 hedge funds investing in US stocks. The top 10 consensus stock picks of hedge funds outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). Whether you are a beginner investor or professional one looking for the best stocks to buy, you can benefit from the wisdom of hedge funds and corporate insiders.
Don’t Miss: World’s 20 Richest Countries by GDP (PPP) per Capita
50 Poorest Countries Based on GDP Per Capita (2023 PPP)
50. Samoa
GDP per Capita (PPP): $6323.80
Since most Samoans live in rural areas, the resultant demographic imbalance leads to poor education, opportunities, and social benefits.
49. Kyrgyz Republic
GDP per Capita (PPP): $6,249.68
In Kyrgyzstan, more than 33.3% of the population lives below the national poverty line as of 2023.
48. Nigeria
GDP per Capita (PPP): $6,177.93
Rampant corruption, political instability and lack of employment are all leading causes for abject poverty in Nigeria.
47. Cambodia
GDP per Capita (PPP): $6,092.04
In Cambodia, more than 185 of the population lives below the national poverty line, with more than 62% of the population living in inadequate, one bedroom housing.
46. Tuvalu
GDP per Capita (PPP): $5,796.86
Due to intense climate variability and limited terrestrial resource stores, Tuvalu has extremely low food and water security.
45. Tajikistan
GDP per Capita (PPP): $5,292.78
In the country, the proportion of employed population living below the $1.90 purchasing power parity a day is 1.6% as of 2023.
44. Republic of Congo
GDP per Capita (PPP): $5,155.01
The Republic of Congo is amongst the five poorest countries in the world, with more than 62% of the population living on less than $2.15 a day.
43. Myanmar
GDP per Capita (PPP): $5,131.53
Myanmar is still reeling from the aftermath of the 1962 plan to nationalize all industries following the Burmese coup d’état, turning the country is one of the poorest countries based on GDP per capita.
42. Nepal
GDP per Capita (PPP): $5,100.70
One of the most disaster-prone countries in the world, more than 195 of Nepalis are multidimensionally poor across numerous indicators.
41. Sao Tome and Principe
GDP per Capita (PPP): $4,873.93
Despite a GDP per capita of $4873.9, Sao Tome and Principe faces substantial socio-economic turbulence due to elevated poverty rates of 15.6%.
40. Marshall Islands
GDP per Capita (PPP): $4,668.85
Due to rampant corruption and extremely low employment levels, the Marshall Islands make our list of the poorest countries based on GDP per capita.
39. Cameroon
GDP per Capita (PPP): $4,664.93
More than 55% of the population of Cameroon lives significantly below the poverty line, and 37.7% are classified as severely impoverished.
38. Papua New Guinea
GDP per Capita (PPP): 4,514.90
Although the country is regarded as a middle income country, Papua New Guinea has high levels of income inequality, leading to a low GDP per capita of $4154.9.
37. Senegal
GDP per Capita (PPP): $4,514.90
Due to lack of employment and business opportunities in Senegal, the country records high levels of emigration and food insecurity.
36. Sudan
GDP per Capita (PPP): $4,471.41
Conflicts, droughts, illiteracy, floods, and diseases are some of the factors contributing to the increased rates of poverty in Sudan.
35. Benin
GDP per Capita (PPP): $4,299.87
Inequality in education and the rife political instability lead to widespread poverty and vulnerability of the country’s population
34. Zambia
GDP per Capita (PPP): $4,040.97
Due to geographical isolation and lack of technical knowledge amongst the population, poverty is rife in Zambia.
33. Micronesia
GDP per Capita (PPP): $3,724.42
Micronesia has long suffered from subpar governance and a lack of commitment to structural reform, which continues to hinder economic development in the country.
32. Ethiopia
GDP per Capita (PPP): $3,724.42
A high frequency of droughts lead to poor farming families relying on survival without food crops, hunger, and periodic famine.
31. Timor-Leste
GDP per Capita (PPP): $3,637.30
Lack of access to water, political corruption, and climate degradation are major drivers behind the high rates of food and nutrition insecurity, and poverty in Timor
30. Tanzania
GDP per Capita (PPP): $3,599.94
With 76% of Tanzania’s population heavily reliant on rain-fed agriculture, the country is increasingly susceptible to economic shocks due to climate change.
29. Comoros
GDP per Capita (PPP): $3,462.85
More than 45% of Comoros’ population lives below the national poverty line, with an additional 44% facing either moderate or severe food insecurity.
28. Lesotho
GDP per Capita (PPP): $3,250.99
More than 19.6% of Lesotho’s population is multidimensionally poor, while an additional 27% has been declared to be vulnerable to multidimensional poverty.
27. Haiti
GDP per Capita (PPP): $3,248.44
Haiti is the poorest country in Latin America with a poverty rate of more than 63%.
26. Uganda
GDP per Capita (PPP): $3,224.40
Political instability, rampant corruption, and high levels of income inequality are central drivers to the rising poverty rate in Uganda.
25. Guinea
GDP per Capita (PPP): $3,217.84
Due to rampant corruption, economic instability, and poor infrastructure, Guinea is one of the poorest countries based on GDP per capita.
24. Rwanda
GDP per Capita (PPP): $3,090.46
The scarcity of arable land and a skyrocketing rate of population growth, coupled with political and social instability, are rapidly exacerbating the poverty rate in Rwanda.
23. Guinea-Bissau
GDP per Capita (PPP): $3,071.89
Guinea-Bissau’s documented history of political and institutional fragility has been detrimental to economic growth and poverty alleviation.
22. Vanuatu
GDP per Capita (PPP): $3,001.32
Due to worsening climate change, Vanuatu’s food security and resistance to cyclones and other disasters has taken a massive hit.
21. The Gambia
GDP per Capita (PPP): $2,803.72
The Gambia faces multiple points of economic stress like climate change variability, depleted access to forage resources, consistent forest fires, and encroachment by crop cultivation.
20. Togo
GDP per Capita (PPP): $2,754.40
Ranked one of the poorest countries based on GDP per capita by the IMF, development in Togo is undercut with rife political instability, depleted commodity prices, and unfavorable balance of payments.
19. Burkina Faso
GDP per Capita (PPP): $2,726.22
Burkina Faso is a low-income Sahelian country with extremely limited natural resources, highly variable precipitation, low literacy rate, and non-functional economy.
18. Mali
GDP per Capita (PPP): $2,655.72
With a poverty rate of more than 20%, Mali is also one of the world’s poorest countries based on GDP per capita.
17. Zimbabwe
GDP per Capita (PPP): $2,627.11
More than 6.6 million people in Zimbabwe were estimated to live in extreme poverty due to tough climate challenges and an unstable, non-functioning economic substructure.
16. Solomon Islands
GDP per Capita (PPP): $2,414.13
The social and economic conditions in the Solomon Islands have deteriorated to a great extent. This is primarily due to corruption by political officials and lack of job opportunities.
15. Kiribati
GDP per Capita (PPP): $2,381.39
More than 23% of Kiribati’s population lives below the national poverty line, with unemployment rising to 12% as of 2023.
14. Eritrea
GDP per Capita (PPP): $2,082.30
Based in East Africa, Eritrea has a staggering poverty rate of 40% which is expected to fall by a measly 13% by 2040.
13. Sierra Leone
GDP per Capita (PPP): $2,082.30
More than 60% of the population of Sierra Leone has been described as living in abject, multidimensional poverty, while an additional 21.3% is considered vulnerable to multidimensional poverty in the coming years.
12. Yemen
GDP per Capita (PPP): $2,042.22
Reeling from civil war, constant political turmoil, terrorism, and corruption, Yemen is one of the world’s poorest countries based on GDP per capita.
11. Madagascar
GDP per Capita (PPP): $1,916.37
Madagascar grapples with abject poverty due to a wide variety of reasons, ranging from change change variability, rampant deforestation, and a global surge in food prices. Madagascar is number 11 on our list of the poorest countries based on GDP per capita.
Click here to continue reading and see 10 Poorest Countries Based on GDP Per Capita (2023 PPP).
Suggested Articles:
- 20 Largest Air Forces in the World Heading into 2024
- 20 States that Drink the Most Wine
- 25 Best Countries For Foodies To Travel
Disclosure: None. 50 Poorest Countries Based on GDP Per Capita (2023 PPP) is originally published on Insider Monkey.
