In this article, we will talk about the 10 countries with the worst economies in the world in 2023. We have also looked at the current trends contributing to slow economic growth in those countries and discussed the companies aiming to alleviate poverty in another article. If you are interested in reading about that along with a more extensive list, head straight to 25 Countries with the Worst Economies in the World in 2023.
10. Burkina Faso
GDP growth rate: 1.5%
Ever since the COVID-19 pandemic hit the economy in 2020, the country’s growth, which was once driven by the production of gold and cotton, has been severely impacted due to security concerns and the political situation. In 2021, over 17% of Burkina Faso’s GDP constituted the agricultural sector. Additionally, the country has a poverty rate of 30.5%.
9. The Republic of Congo
GDP growth rate: 1.5%
The Republic of Congo had a growth rate of 1.5% in 2022, followed by a decrease of 2.2% in its growth rate in 2021. Since the growth rate of 2022 was not able to help poverty get any better, there was an increase of 0.5% in the proportion of people living in extreme poverty from 2021 to 2022. Currently, the country has a poverty rate of 35.4%.
8. Malawi
GDP growth rate: 0.9%
In 2022, the country’s GDP was $13.16 billion, according to the World Bank. As a result of Malawi’s economy’s predominant dependence upon the agricultural sector, the growth potential has been limited due to being prone to weather shocks. Additionally, Malawi has a poverty rate of nearly 50.7%.
7. Sao Tome and Principe
GDP growth rate: 0.9%
Hampered by continuing energy shortages and rising food and fuel prices due to the Ukraine conflict, the GDP growth rate was decelerated to 0.9% in 2022. As per the World Bank, the growth rate is expected to accelerate to 2.1% by 2023 and around 4% by 2025. Furthermore, the country’s poverty rate stands at roughly 15.6%.
6. Lesotho
GDP growth rate: 0.6%
As a result of the demanding global environment worsened by the Ukraine war, climate changes, and rising global conflicts, the GDP growth rate has been constrained. Moreover, the country had a nominal GDP per capita worth $1,045.9 in 2022.
5. Central African Republic
GDP growth rate: 0.0%
After two consecutive years of near-stagnation, floods and fuel shortages stopped the Central African Republic’s (CAR) economy in 2022. In the subsequent half of 2022, floods hit 12 of the country’s 17 regions. It is one of the poorest economies in the World.
4. Micronesia
GDP growth rate: -0.6%
The Federated States of Micronesia, a country in the western Pacific Ocean, relies mainly on agriculture and fisheries. The country is still struggling from the effects of weak economic growth and poverty as a result of its limited access to resources. It is one of the countries with the worst economies in the world in 2023.
3. Sudan
GDP growth rate: -1%
With a large majority of Sudan being dry, almost one-third of Sudanese require emergency relief such as clean water, shelter, or food, as per the UN. It is also one of the least developed countries in the world in 2023.
2. Haiti
GDP growth rate: -1.7%
Haiti remains the most underprivileged country in Latin America and the Caribbean (LAC). In 2021, the country had a GNI per capita worth $1,420, the lowest in the LAC region. Moreover, the country is also prone to natural disasters like floods, earthquakes, and hurricanes. It is also ranked as one of the 20 worst-performing economies in 2023.
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Afghanistan
GDP growth rate: -20.7% (2021)
According to the World Bank, around 40% of Afghanistan’s GDP was dependent upon international aid but the foreign aid was soon suspended when political tension hit the country in 2021, which resulted in economic struggles. Furthermore, gender discrimination limits women’s economic participation, exacerbating economic challenges and poverty. It is also one of the world’s most remittance-dependent countries. Afghanistan has the lowest GDP growth rate in the world, making it the poorest country in Asia in 2023. It is the country with the worst economy in the world in 2023.
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