Want to know which country in the world ranks as the poorest? In this article, we share the 29 poorest countries in the world.
Inequality, conflict, poor healthcare systems, climate change, poor public works, and infrastructure, lack of education, and global health crises including epidemics and pandemics are all causes of poverty amongst the poor countries in the world.
The big question is how can we establish which nations are the poorest in the world? Purchasing power parity (PPP), which adjusts for variations in living expenses and inflation rates, can be used to more accurately measure a person’s purchasing power in any given nation, even if GDP per capita is frequently regarded as the standard indicator.
These are the twenty poorest countries in the world.
Burundi, $308
Burundi is currently the topmost-poorest nation in the world due to a lack of natural resources and a 12-year civil war that has left its country scarred. Burundi’s food insecurity is nearly twice as severe as the average for sub-Saharan African nations since 80% of its roughly 13 million residents depend on subsistence agriculture.
Less than 5% of the population has access to electricity, while water and sanitary facilities are still in very short supply.
In response to President Evariste Ndayishimiye’s efforts to revive the economy and mend diplomatic ties, both the US and the EU restarted funding last year after easing banking restrictions. Sadly, GDP is still weak, and inflation is expected to be over 16% this year.
Sierra Leone, $472
The mid-2010s saw the Ebola virus rattle the economy, having an impact on jobs and trade following a protracted civil war that concluded in 2002. Import costs have risen significantly this year as a result of the conflict in Ukraine, which had purchasing power and sparked violent anti-government rallies in August.
Poor governance, a constrained fiscal space, and a small export base, primarily made up of base metals, timber, diamonds, and cocoa, are the main economic drags for Sierra Leone.
Malawi, $483
Malawi is the third poorest country in the world. With only one cash crop, tobacco, Malawi’s economy is hampered by its reliance on subsistence farming. In addition, there is a chance that private investment will be limited by the relatively high level of public debt, and power outages will hurt economic activity. Additional risks include significant fiscal and current account deficits, a fractured parliament, reliance on foreign funding, and susceptibility to major weather occurrences.
Malawi’s economy will increase somewhat between 2022 and 2026, but there are still many obstacles to overcome, such as weather shocks that harm the nation’s rain-fed agriculture sector, a lack of available concessional finance, and a hostile business environment that undermines investor confidence.
Central African Republic, $516
The Central African Republic, one of the world’s poorest nations for the better part of ten years, is a tremendously wealthy nation with a population that is extremely impoverished while being rich in gold, oil, uranium, and diamonds.
Almost half of the population of the Central African Republic (CAR) is estimated to be suffering from acute food insecurity, according to the United Nations Office for the Coordination of Humanitarian Affairs (OCHA). This is due to the sharp rise in the prices of basic goods that followed the conflict in Ukraine, as well as cycles of severe flooding and dry spells.
Madagascar, $540
Madagascar has great potential for expansion due to its young population, enormous and distinctive biodiversity, deep forests, fertile agricultural land, outstanding tourism attractions, and one of the longest coastlines in Africa. The terrible part is that Madagascar is also one of the world’s poorest nations.
The per capita income of Madagascar decreased by 45% between 1960 (the year of independence) and 2020. Surprisingly, this took place in a setting that was generally free of violent conflict—possibly the only such occurrence on the entire planet.
Various crises, mainly political but also meteorological and, more recently, the COVID-19 epidemic, have erased the meagre progress that had been made during years of relative peace. Despite a slight economic rebound following the nation’s most recent political crisis, between 2009 and 2013, the GDP per capita growth rate averaged just about 0% annually.
Somalia, $562
Violence has for long plagued Somalia, which is located in the Horn of Africa, for many years. To create an independent state within the nation, the Islamist rebel group Al-Shabab is currently the government’s biggest security threat. Future growth is expected to be hampered by this violence and the potential for drought.
Nevertheless, recent years have seen a few encouraging developments. Major population centres have seen an Al-Shabab flee. And, in a seamless transfer of power, a new president took office in May 2022.
South Sudan, $570
Since a flimsy peace agreement was struck in 2018 to put an end to five years of civil war, the South Sudanese economy has remained shaky. The UN reports that the great majority of people are currently suffering from extreme food insecurity as a result of the conflict in Ukraine, high levels of violence, currency depreciation, the effects of these conflicts on the economy, and supply interruptions.
The first election in the nation, which was just postponed to late 2024, will be a crucial event to follow. Additionally, hostilities may break out between President Kiir and Vice President Machar, who supported different sides in the civil war. Furthermore, a predicted decline in oil prices over the following several years will have an impact on tax revenue.
Niger, $574
Niger ranks eighth among the world’s poorest nations despite being the seventh-largest exporter of uranium globally. 40% of the state budget in Niger is made up of foreign aid, even though 10% of the country’s population, or 10 million people, live in abject poverty.
20 million people in Niger are deemed as strong and more than 97% of them are Muslims. The country is one of the world’s poorest nations since it experiences frequent droughts and has a limited amount of arable land.
Mozambique, $579
The nation has significant mineral deposits, abundant water resources, and numerous perennial rivers that cross it. However, Mozambique is a very poor, heavily indebted nation.
More than 80% of Mozambicans still survive on less than $2 a day, despite the country’s significant success in reducing poverty. International humanitarian organizations continue to fight poverty in Mozambique by donating aid to eradicate hunger, enhancing the quality of the country’s water and sewage system, and expanding the country’s health and educational systems.
Eritrea, $700
More than 66 per cent of Eritrea’s population now lives below the poverty line, and poverty has become widespread there. In 1997, only 22% of Eritreans had access to clean water, and only 12% had access to sanitary facilities.
Eritrea’s citizens struggle just to make ends meet due to poverty, never mind getting a decent education. An estimated 49% of the population is literate. Furthermore, the problems brought on by poverty are not alleviated by a poor educational system.
In the coming years, Eritrea will not manage to support itself after natural disasters and continuing wars may further devastate the nation. This new nation will need assistance and direction as it strives for development and wealth.
Congo, $704
Through programs in education, energy, health, and other social services, the World Bank supports efforts to reduce poverty and raise living conditions for people in the Democratic Republic of the Congo.
There are still some unrest spots throughout the nation, especially in the east, despite efforts to prevent conflicts and stabilize the situation. In preparation for the upcoming general election, which is expected to take place in late 2023, the nation is now finishing up voter registration. However, fighting between the army and armed groups in recent months has drastically worsened the security situation in the provinces of North Kivu and Ituri, driving thousands of people to escape.
Due to capacity expansion and a rebound in demand globally, mining sector exports and investment continue to be the main drivers of development. However, growth in non-mining industries, especially services, was moderate and slowed from 4.5% in 2021 to 3.0% in 2022.
Chad, $755
The life expectancy in Chad is the lowest of any nation, making it one of the world’s poorest nations. Only 50.6 years were reported to be the average lifespan of Chadian citizens in 2017. Compared to other nations, Monaco has the highest life expectancy, with its residents living about 40 years longer on average. Because of the ongoing instability and poverty that Chadians experience, this is a frightening and glaring contrast.
And, given that only 4% of Chadians living in rural areas have access to clean water, food, and water are two of the nation’s most scarce resources. Due to this, they are extremely vulnerable to serious water-borne illnesses including cholera and diarrhoea.
Furthermore, the Chadian people are compelled to rely on their agricultural abilities because there aren’t enough educational options available to them. For a nation that has experienced numerous natural disasters, this is worrisome.
Liberia, $770
According to these projections, 2 717 000 individuals in Liberia will be classed as multidimensionally poor in 2021, with another 23.3 per cent being vulnerable to multidimensional poverty (1 211 000 people).
The World Bank estimates that 54% of Liberia’s population lives below the poverty level. 83.7% of people in 2011 were living on less than $2 per day.
Due to a 14-year civil war and the 2014 Ebola outbreak, which forced schools to close, Liberia’s educational system is still under its development. The country has one of the highest percentages of out-of-school children in the world (15–20%), with the majority of African nations, according to UNICEF, falling behind in their educational systems.
The country also struggles with water crises, lack of enough toilets and sanitation services, youth unemployment rates, and child labour.
Burkina Faso, $832
Burkina Faso is a Sahelian nation with a low standard of living and few natural resources. Although exports of gold are increasing, the country’s economy still mostly depends on agriculture.
Over 40% of people in the country are considered to be poor. The United Nations Development Programme (UNDP)’s 2021-2022 HDI study places Burkina Faso at number 184 overall among 191 nations.
Yemen, $872
In the Middle East and North Africa, Yemen ranks second in terms of poverty. Yemen has one of the highest poverty rates in the world.
According to the United Nations Development Programme, 18.4% of Yemen’s population is estimated to live in extreme poverty (below the poverty line), and 55% of the population overall.
Being one of the poorest Arab nations, the nation is heavily dependent on the dwindling income from its paltry oil and gas reserves. Economic issues, unemployment, and shortages of food, water, and medical supplies have all been made worse by a complicated civil war.
Guinea-Bissau, $874
About 1.9 million people live in Guinea-Bissau, one of the world’s poorest and most unstable nations.
Since its separation from Portugal in 1974, Guinea-Bissau has experienced political and institutional instability. It is one of the nations with the highest rate of political unrest and coup attempts worldwide. Four successful coups have been documented since independence, while another 17 have either been attempted, plotted, or claimed.
A majority of Bissau-Guineans—around 85%—get their income primarily from agriculture. Chronic food insecurity is a reality for 11% of the population due to irregular rainfall patterns, unpredictable import rice prices, and export cashew nut prices. Malnutrition is a problem that has been made worse by poor water and sanitation, insufficient health care, and food poverty.
Mali, $877
Mali, the fourth-largest nation on the African continent, previously thrived as a trading hub, with its capital, Bamako. Today, however, the nation (which achieved independence from France in 1960) has a GDP per capita of $877 and a life expectancy of 58.5. Due to ongoing war and violence, the average number of years spent in education in the nation is merely 2.3 (as opposed to the predicted 7.7 years). Over 41% of the population is estimated to be living in poverty according to the most recent World Bank data from 2009.
The Gambia, $883
Small and least developed, The Gambia has a relatively limited economic basis. Tourism, remittances from abroad, and re-exports are the main sources of income for the external sector. Compared to many other emerging nations, import and export procedures are rather easy and efficient.
Both electricity and clean water are not accessible to about 70% of the people in metropolitan areas, which is close to 50% of the total population.
Sudan, $930
Extreme poverty affects one in four Sudanese. In Sudan, poverty has a lot to do with unemployment. Despite making up only 2.4% of the population overall, individuals living in homes with unemployed heads make up 50% of those who are below the poverty line.
17.3 million people in Sudan do not have access to a basic supply of drinking water, putting them at risk for illness. 24 million people live in areas without adequate sanitation facilities.
Additionally, since violence between the army and paramilitary forces broke out on April 15, 2023, Sudan’s security situation has become extremely perilous. Numerous casualties, including civilians, have been caused by widespread heavy gunfire and explosions.
Rwanda, $968
Rwanda is one of the world’s poorest nations even though its definition of poverty is lower than the cost of a basket of essential commodities and services, which in 2000 was equal to around $0.45 per day.
Significant obstacles to Rwanda’s economic development have included high demographic pressure, a lack of arable land, and restricted access to the Indian Ocean. 1994 saw the emergence of fresh difficulties as a result of numerous social issues that had a disastrous impact on the economy of the nation.
Currently, Rwanda’s goals are to become a Middle-Income Country by 2035 and a High-Income Country by 2050.
Conclusion
Living on less than $2 per day is a concept that most of us find to be utterly absurd. For some 800 million people worldwide more so in these poverty-stricken countries on earth, it is the truth. Extreme poverty is defined as having a daily income of less than $1.90 for 10% of the world’s population.
