According to the GDP , this is the list of the poorest countries in the whole world, GDP per capita is often considered an indicator of the standard of living of a given country,
- 1 According to the GDP , this is the list of the poorest countries in the whole world, GDP per capita is often considered an indicator of the standard of living of a given country,
As it reflects the average wealth of each person residing in a country. It is therefore the standard method used to compare how poor or wealthy countries are in relation to each other. With 2018 just under way, we decided to take a look at our forecasts for GDP per capita from 2018 to 2022 for the 127 countries we cover to get an idea of what countries are the poorest currently and which will be making a leap toward becoming wealthier in the coming years. The projections used in this study are Consensus Forecasts based on the individual forecasts of over 900 world renowned investment banks, economic think tanks and professional economic forecasting firms.
This information is trusted and approved by the atlas ,many of the poorest nations in the world are places where issues such as authoritarian regimes, political turmoil, weak financial institutions, inadequate infrastructure and corruption deter foreign investment despite the fact that many of them are immensely rich in natural resources and have a young, growing population. In our list of the top 10, five are landlocked, which means they have no direct access to maritime trade and another one is in the midst of a civil war, which helps to explain why some of them are currently not in the best of shape.
1. Democratic Republic of Congo
2016 GDP per Capita: USD 441
2018 GDP per Capita (projected): USD 468
2022 GDP per Capita (projected): USD 632
Although the DRC has abundant natural resources, unfortunately with a projected 2018 GDP per capita of USD 468, the country is in the unenviably position of being the poorest country in the world. There has been severe political unrest in recent years, as calls for President Joseph Kabila, who took power after the assassination of his father in 2001, have reached a fever pitch. Kabila was reelected in 2011 in a controversial election and has since postponed elections several times with the latest date set for December 2018.
2016 GDP per Capita: USD 383
2018 GDP per Capita (projected): USD 486
2022 GDP per Capita (projected): USD 579
The second poorest country in the world is Mozambique with a forecasted GDP per capita of USD 486 for 2018. The former Portuguese colony has high hopes of transforming its economy based on prospects of abundant natural gas fields discovered in 2011. The country recently took an important step toward said transformation with the approval of a USD 20 billion Anadarko liquified natural gas plant on 7 February, which envisages exploiting the country’s vast deposits of natural gas.
2016 GDP per Capita: USD 694
2018 GDP per Capita (projected): USD 738
2022 GDP per Capita (projected): USD 898
Uganda finds itself in third place on the list with a 2018 projected GDP per capita of USD 738. Although this represents a large leap from the level of the first two on the list, Uganda is a bit of a strange case. Following the 1986 armed conflict, the ruling political party National Resistance Movement (NRM), enacted a series of structural reforms and investments that led to a period of significant economic growth and poverty reduction all the way up to 2010. In the last five years or so, economic growth has slowed and consequently so has the pace of poverty reduction.
There are a variety of factors that have brought on the slowdown, however, it has been attributed mostly to adverse weather, private sector credit constraints, the poor execution of public sector projects and unrest in their neighbor South Sudan, which has flooded the country with refugees fleeing the country and subdued exports. According to the World Bank, if Foreign Direct Investment accelerates, the banking system stabilizes, and budgeted, capital spending is executed without delays, the economy may start to pick up once again, helping to reduce poverty.
2016 GDP per Capita: USD 806
2018 GDP per Capita (projected): USD 836
2022 GDP per Capita (projected): USD 1086
Tajikistan is number four on the list of poorest countries with a projected 2018 GDP per capita of USD 836. Tajikistan gained independence after the fall of the Soviet Union, however, a civil war broke out shortly after, which lasted five years until 1997. Since then, political stability and foreign aid have allowed the country’s economy to grow, reducing poverty rather remarkably. According the World Bank, poverty fell from over 83% to 47% between 2000 and 2009 and fell further from 37% to 30% between 2012 and 2016. Since then, poverty reduction, has regrettably stagnated, however, it is projected to fall from 30% to 25% by 2019 as growth picks up.
2016 GDP per Capita: USD 705
2018 GDP per Capita (projected): USD 874
2022 GDP per Capita (projected): USD 1154
Haiti is number five on the list with an expected GDP per capita of USD 874. Haiti is extremely vulnerable to extreme weather and natural disasters with 90% of the country’s population at risk according to the World Bank. These natural disastersh batter the country in more ways than one, including the economy. The 2010 earthquake for example did damage equivalent to 32% of the country’s GDP.
2016 GDP per Capita: USD 884
2018 GDP per Capita (projected): USD 938
2022 GDP per Capita (projected): USD 1253
Back to Africa now with number six on the list, Ethiopia is located in the Horn of Africa, which gives it a great strategic jumping off point, as it is close to the Middle East and its markets. Although it is technically landlocked, it’s tiny bordering neighbor, Djibouti acts as its main port. Ethiopia has grown rapidly since the turn of the century, and is currently the fastest growing country in Africa, although extremely poor as evidenced by its projected 2018 GDP per capita of just USD 938.
2016 GDP per Capita: USD 762
2018 GDP per Capita (projected): USD 998
2022 GDP per Capita (projected): USD 1502
Yemen is in the midst of massive civil war that has caused a catastrophic humanitarian crisis, which goes a long way to explaining the country’s place on this list of the poorest countries in the world. Yemen is forecast to have a GDP per capita of USD 998 in 2018. Basic services across the country are on the verge of collapse, as half of the population is currently living in areas directly affected by the conflict and 2.8 million Yemenis have been forcibly displaced.
2016 GDP per Capita: USD 2145
2018 GDP per Capita (projected): USD 1026
2022 GDP per Capita (projected): USD 1646
Uzbekistan is eighth on the list of poorest countries according to 2018 GDP per capita, which is forecast to come in at USD 1026. The country’s economic growth was fast between 2004 and 2016, lifting significant portions of the country out of poverty. A country rich in commodities, Uzbekistan was aided by high commodities prices and increased exports of gas, gold and copper, which generated state revenues that financed large increases in investment and wages that bolstered private consumption.
2016 GDP per Capita: USD 976
2018 GDP per Capita (projected): USD 1112
2022 GDP per Capita (projected): USD 1362
Number nine on the list of poorest economies is Tanzania with an expected USD 1112 GDP per capita for 2018. Tanzania’s economy has been very consistent over the last decade averaging between 6 and 7% growth every year. According to the World Bank, the poverty rate has also steadily declined, however, the absolute number of people living in poverty has not due to the high growth rate of its population over that time.
2016 GDP per Capita: USD 1081
2018 GDP per Capita (projected): USD 1222
2022 GDP per Capita (projected): USD 1446
Last on the list is Kyrgyzstan, the an expected 2018 GDP per capita of USD 1222. A landlocked, largely mountainous country with just over 6 million, the Kyrgyz Republic recently adopted a parliamentary system in 2011.
Having experienced considerable political and social instability with weak governance and high corruption since gaining independence in 1991, the country’s current democracy is a far cry from those days. Nonetheless corruption is still pervasive in the public sector, which contrain the country’s economic growth potential.