In this article, we take a look at the 10 least developed countries in Europe. If you want to check out our detailed analysis of the uneven development in Europe, go directly to the 25 Least Developed Countries in Europe.
10. Belarus
GDP per Capita: $7,302
The economy of Belarus is largely dependent on low-skilled industries, which has limited its competitiveness. In addition, the country is heavily dependent on Russia for trade and energy, which has left it at the mercy of Russia’s economy.
Further, Belarus was ranked in the 82nd position in the Corruption Perception Index of 2021, indicating high levels of corruption in the country. All these factors contribute to Belarus being one of the least developed countries in Europe.
9. Bosnia and Herzegovina
GDP per Capita: $7,143
Bosnia and Herzegovina is located in Southeastern Europe. The country had been ravaged by the Yugoslavia and the Bosnian War of the 1990s and is still recovering from the widespread damage to its infrastructure and the economy.
8. North Macedonia
GDP per Capita: $6,695
North Macedonia was part of Yugoslavia up until 1991 and although it has liberalized its market, it still struggles with corruption and political instability. Moreover, the country has huge problems when it comes to infrastructure. North Macedonia is ranked 99th out of 167 countries on the Logistics Performance Index of the World Bank.
7. Albania
GDP per Capita: $6,493
Albania is one of the least developed countries in Europe. The factors that make it so include corruption, political instability, lower levels of foreign investment and infrastructure, among others.
6. Azerbaijan
GDP per Capita: $5,388
Azerbaijan is another transcontinental country, located partially in Eastern Europe. Its economy is heavily dependent on oil and is not diversified enough for high growth, with 90% of its revenue coming from oil and gas exports, which also finance 60% of the government’s budget.
Other factors that keep it from the development levels of Western Europe include corruption, political instability and low investment. Azerbaijan also suffers from poor infrastructure and is ranked 123rd out of 167 countries on the Logistics Performance Index.
5. Kosovo
GDP per Capita: $5,270
Kosovo is one of the least developed countries in Europe. Its infrastructure took significant damage in the Kosovo War and the country is still recovering from its impact. On top of that, structural problems like corruption and an inefficient bureaucracy also contribute to the low development in the country.
4. Moldova
GDP per Capita: $5,231
Moldova is one of the poorest countries in Europe, with a GDP per Capita of $5,231. Moldova suffers from several structural problems for its low income and development, including corruption and political instability, inefficient bureaucracy and low investment.
Other factors include brain drain. The country’s economy is also largely dependent on agriculture.
3. Georgia
GDP per Capita: $5,023
Georgia is another transcontinental country on the list of the least developed countries in Europe. It has a GDP per Capita of $5,023 as of 2021. Georgia is still undoing many of the Soviet-era policies that held it back in terms of socioeconomic development.
2. Armenia
GDP per Capita: $4,966
Armenia is yet another transcontinental country, being on the border of Asia and Europe geographically. However, culturally, politically and historically, Armenia is considered very much a part of Europe.
However, it lags behind in development in comparison to its peers on the continent, with a GDP per Capita of $4,966 as of 2021.
1. Ukraine
GDP per Capita: $4,836
Ukraine has the lowest GDP per Capita of any country in Europe. On top of that, it has suffered further damage to its economy, infrastructure and society due to the ongoing Russian assault.
Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily enewsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also take a peek at 25 Strongest Countries in Europe by Military Power and 9 Famous Pyramid Scheme Companies in US History.
