We recently compiled a report on the 35 Poorest Countries by GDP Per Capita in 2024 and in this article we will look at the poorest country.
Global Economy and Poverty
The poorest countries in the world have been hit hard following the post COVID-19 economic crisis, leading to high inflation and interest rates. Extreme poverty increased, as measured by the international poverty line of $2.15, from 8.9% in 2019 to 9.7% in 2020. This was the first rise in global poverty in decades. According to the World Bank, global extreme poverty in 2020 was mainly driven by South Asia, where extreme poverty soared to 13% between 2019 and 2020. Whereas, poverty fell and had a higher poverty line of $3.65 in East Asia and the Pacific and Latin America and the Caribbean in 2020. In Europe, Central Asia, and advanced countries, the poverty level was low at the international poverty line of $6.85. The global poverty was still marginally high compared to pre-pandemic levels by 2022, though on a declining trend. In 2022, almost 23 million more people were living in extreme poverty compared to 2019.
At $3.65 and $6.85, Syria and Uzbekistan have a revised poverty projection, down by 0.7 and 0.6 percentage points, reflecting a reduction in global poverty counts by 52 and 44 million, respectively. The global extreme poverty has been revised slightly by 0.1 percentage points to 8.9% from 2019, taking the poor people count from 701 million to 689 million in 2024. The global poverty rate reduction occurs despite an increase in extreme poverty in Sub-Saharan Africa by 14 million.
According to the UNDP 2023 Global Multidimensional Poverty Index, 25 countries halved multidimensional poverty within the last 15 years. However, nearly 1.1 billion people remain poor among the 6.1 billion people in the world, as per the dataset. Out of those 1.1 billion people, 534 million live in Sub-Saharan Africa. A total of 566 million of the 1.1 billion people are under the age of 18 years. While, almost 485 million poor people live in extreme poverty, facing 50–100% of weighted deprivations. Some of the least developed countries in Africa are also the poorest African countries.
How Nestlé Helps in Improving Livelihoods?
Nestlé (OTC:NSRGY), a Switzerland-based multinational corporation, is a processing conglomerate entity in the food and drinks industry. Nestlé is the biggest food company in the world with a whopping market cap of around $274.53 billion, as of July 7. Nestlé (OTC:NSRGY) is one of the leading firms that is involved in contributing to the United Nations Sustainable Development Goals (SDGs) to help fight global issues including poverty, inequality, and climate change, among others. The company is focused on supporting almost 10 million young people in giving access to economic opportunities by 2030. In 2023, nearly 10,000 families were involved in Nestlé’s income accelerator program in cocoa production.
In collaboration with the World Economic Forum, Nestlé (OTC:NSRGY) initiated its Income Accelerator Programme in 2022. The program includes the International Cocoa Initiative, the Sustainable Trade Initiative, and the Rainforest Alliance. The company offers up to €500 annually to the households of the families taking part in the Income Accelerator Programme. Through good agricultural practices, Nestlé has been able to produce almost 130 kgs of cocoa from one hectare of land, a 20% increase in cocoa production. In addition, the families have used the money to cover health care and schooling costs. The Income Accelerator Programme has contributed to the improvement of school enrollment rates by 8%.
In the latest quarter ending March 31, 2024, Nestlé (OTC:NSRGY) posted total sales of around $24.7 billion, down from $26.3 billion year-over-year. The company also saw a negative Real Internal Growth (RIG) of 2%. The company expects things to get better in the second quarter and for the rest of the year. Nestlé expects an organic sales growth of almost 4% in 2024. Whereas, the underlying earnings per share in constant currency is expected to increase between 6% and 10%.
Nestlé (OTC:NSRGY) has a diversified product portfolio that allows the company to capitalize on the growth opportunities present in the developing countries, which account for almost 40% of its turnover. The company’s overall portfolio consists of Powdered and liquid beverages (26.64%), PetCare (18.9%), Nutrition and health science (15.3%), Prepared dishes and cooking aids (11.7%), Milk products and ice cream (11%), Confectionaries (8.7%), and Water (3.3%).
Nestlé’s (OTC:NSRGY) stock is trading at $106, as of July 17, and analysts’ median price target points to an upside of 11.55% from current levels. The stock is trading at 19 times its forward earnings, which is a 17.26% discount to its five-year average of 23.06.
Our Methodology
To compile our list of the 35 poorest countries by GDP per capita in 2024, we sourced data from the International Monetary Fund (IMF). IMF provides data for the GDP per capita (current prices) data for 2024. For the countries whose GDP per capita was not available on the IMF, we have sourced it from the World Bank database. Our list ranks the 35 poorest countries by GDP per capita in 2024 in ascending order of their GDP per capita.
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The Poorest Country by GDP Per Capita in 2024
1. Burundi
GDP Per Capita (2024): $230
Burundi has a GDP per capita of just $230 in 2024. Burundi is a landlocked country with a low-income economy. Almost 80% of the country’s population is employed in the agricultural sector. Due to the majority of economic activity in the agricultural sector, Burundi’s economy is vulnerable to climate threats. Almost 75.1% of the population suffers from multidimensional poverty, while an additional 15.8% are on the verge of multidimensional poverty, as of 2021. With a total population of 13.23 million and a GDP of almost $3.08 billion, Burundi is the poorest country by GDP per capita in 2024.
Curious to learn about other countries that are the poorest by GDP Per Capita in 2024? Check out our report on the 35 Poorest Countries by GDP Per Capita in 2024.
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