poorest countries in the world

Gross Domestic Product (GDP) is the sum total of the monetary value of all goods and services produced strictly within the borders of a country for a specified period of time (usually one year). This figure does not take into account foreign investment, thereby differentiating GDP from gross national income (GNI). While most wealth comparisons have typically used nominal GDP figures, this one can’t tell the story of how well people on average are doing dollar-to-dollar wealth comparisons. To get a clearer perspective of what it’s like to live on the lower rungs of the wealth ladder, and how people get there, we’ve listed the countries with the lowest GDP per capita in the world.

Please note that all figures are in US dollars.

The poorest countries in the world 10

10. Madagascar – $ 1,505 per capita per year

Madagascar is unique among the only island nations on this list of countries with substantially low levels of economic activity. The island country, located just off the coast of southern Africa, includes the island of Madagascar which is the fourth largest island in the world, as well as a large number of much smaller islands in the surrounding Indian Ocean waters. . The economy is largely dependent on agriculture, with core products such as rice, tea, cotton, and dairy products. Madagascar has had a bad history of political conflicts and coups, problems that have had devastating effects on its economic productivity.

9. Eritrea – $ 1,410 per capita per year

Eritrea, a small country in the Horn of Africa, has seen some degree of economic growth in recent years. However, it still ranks among the list of the poorest countries in the world, with an average person earning less than $ 1,500 USD annually. 80% of the population of Eritrea works in agriculture. A large amount of the country’s GDP is made up of remittances, i.e. money sent to residents by relatives abroad. The Eritrean-Ethiopian war was a great devastator of Eritrea’s economy.

8. Guinea – $ 1,265 per capita per year

Guinea, not to be confused with Guinea-bissau or Equatorial Guinea, is a country on the west coast of Africa. Although they are very rich in natural resources, problems such as mismanagement, corruption and a lack of secure infrastructure contribute to Guinea’s low per capita GDP of $ 1,265 USD per year. Providing vital resources such as electricity and water is also a challenge in the country, which makes running a business very costly. These factors also make foreign investors hesitant to come to Guinea.

7. Mozambique – $ 1,215 per capita per year

Mozambique, in southern Africa, has an annual per capita GDP of only $ 1,215. Corruption is said to be a huge problem in the country, hampering the economic success of individual citizens. Much of rural Mozambique lives on less than $ 1.25 US per day. Unfortunately, due to lack of access to equipment, many agricultural workers are unable to give up what is needed to make a profit. Like many countries on this list, the economic situation in Mozambique is exacerbated by very poor infrastructure and access to vital services such as clean water.

6. Malawi: $ 1,134 per capita per year

Malawi is a landlocked African country on the continent’s southeastern border. With over 85% of the country’s population of 16 million people living in rural areas and dependent on subsistence agriculture, the country’s economy is fragile and highly dependent on foreign aid. In 2000, however, the International Monetary Fund (IMF) stopped its aid disbursements to Malawi, citing widespread corruption and mismanagement of funds by the government. In the 2013 president, Joyce Banda sold the presidential jet and a fleet of 60 luxury cars to feed the poor and grow crops to fight malnutrition. Just to get involved in a financial scandal involving looting, theft and corruption within the government, which went public the following month. While Banda greatly improved diplomatic relations with other countries when she became president, Norway, Britain and the EU suspended around 150 in aid due to the scandal and she lost heavily in the upcoming elections. The proceeds from the sale of the jet were not taken into account. Malawi continues to grapple with huge problems in its economic system, including the scourge of the HIV / AIDS pandemic, a rudimentary market economy, and a dysfunctional school system. As of January of 2015, Malawi was in the news for another bad reason, as devastating floods left nearly a quarter of a million homeless and destroyed well over 64,000 of farmland, furthering their economic woes. While Banda greatly improved diplomatic relations with other countries when she became president, Norway, Britain and the EU suspended around 150 in aid due to the scandal and she lost heavily in the upcoming elections. The proceeds from the sale of the jet were not taken into account. Malawi continues to grapple with huge problems in its economic system, including the scourge of the HIV / AIDS pandemic, a rudimentary market economy, and a dysfunctional school system. As of January of 2015, Malawi was in the news for another bad reason, as devastating floods left nearly a quarter of a million homeless and destroyed well over 64,000 of farmland, furthering their economic woes. While Banda greatly improved diplomatic relations with other countries when she became president, Norway, Britain and the EU suspended around 150 in aid due to the scandal and she lost heavily in the upcoming elections. The proceeds from the sale of the jet were not taken into account. Malawi continues to grapple with huge problems in its economic system, including the scourge of the HIV / AIDS pandemic, a rudimentary market economy, and a dysfunctional school system. As of January of 2015, Malawi was in the news for another bad reason, as devastating floods left nearly a quarter of a million homeless and destroyed well over 64,000 of farmland, furthering their economic woes.

5. Niger – $ 1,107 per capita per year

While Niger is the largest country in West Africa, most of its territory is covered by the Sahara Desert, limiting the economic activities that the country’s population can undertake. Furthermore, the country is completely landlocked and very poor in resources. Even 20% of the country not covered by the desert experiences periodic drafts, climate change is amplifying the effects of the combined threats of desertification of arable lands and salinization of drinking water.

4. Liberia: $ 855 per capita per year

Located in West Africa, Liberia’s economy was devastated by the Ebola outbreak. However, even before that, the Liberian economy depended heavily on foreign aid. The employment rate in Liberia has been estimated at 15%. Although Liberia used to rely on agricultural products, the price of some of these products has decreased over time, making it more difficult to make a profit.

3. Burundi – $ 814 per capita per year

Burundi is a landlocked African country with an overwhelming majority of the population, depending on subsistence agriculture. Located in Africa’s Great Lakes region, Burundi has a checkered history with ethnic conflicts and military coupes that have consistently derailed its long-term prospects for development. According to IMF data, well over 80% of the country’s population lives below the poverty line. Political unrest has once again rocked the country throughout 2015, despite the progress made in recent years.

2. The Democratic Republic of the Congo – $ 773 per capita per year

There is perhaps no other country with a more dysfunctional economic system than that of the Democratic Republic of Congo (DRC). Although the DRC relies on some of the world’s largest natural resources – including diamonds and other precious stones – decades of struggles and fleeing militias have exhausted these resources and limited the public’s ability to take advantage of them. Some semblance of good governance in recent years has increased export revenues but, as the sprawling country has a very rudimentary infrastructure system, there is still a lot to do before the economy can make a serious name for the nation on the global market.

1. Central African Republic – $ 652 per capita per year

The Central African Republic is a landlocked African country with a high percentage of its population living in rural areas where subsistence farming is the most important professional activity. The economy of the Central African Republic is largely dependent on the export of diamonds, which results in 40-55% of the country’s export earnings. However, it is estimated that up to half of these diamonds are sold on the black market, denying the government tax revenue and undermining honest and hardworking entrepreneurs who try to do things right.

Looking towards a better future

While the details outlined above may lead to depressing reading, hope still thrives in the minds and hearts of innovators and entrepreneurs within poverty stricken places. What is even more encouraging is that most of the countries listed above are experiencing a period of relative calm from political and ethnic strife, a trend that will hopefully continue for years to come. Such periods of comparative peace are likely to offer many of these nations excellent opportunities not only to increase their wealth and prosperity in aggregate but, possibly more importantly, promote socioeconomic equality within and across their respective populations.

Countries with the lowest GDP per capita