GDP per capita is a measure of the average income of a person in a country. It is calculated by dividing the total value of goods and services produced in a country by its population. GDP per capita is often used as an indicator of the standard of living and economic development of a country. However, it does not account for the differences in the cost of living, income distribution, or quality of life among countries.
Top 10 Countries with Lowest GDP per Capita in 2023
In this article, we will look at the top 10 countries with the lowest GDP per capita in 2023, based on the latest projections from the International Monetary Fund (IMF). We will also explore some of the factors that contribute to their low economic performance and some of the challenges they face.
10. Madagascar – $500
Madagascar is an island nation in the Indian Ocean, known for its rich biodiversity and unique wildlife. However, it is also one of the poorest countries in the world, with a GDP per capita of only $500 in 2023. Madagascar suffers from political instability, corruption, weak governance, and frequent natural disasters. The country relies heavily on agriculture, which accounts for about 25% of its GDP and employs 80% of its population. However, agricultural productivity is low due to poor infrastructure, soil erosion, deforestation, and climate change. Madagascar also faces high levels of poverty, malnutrition, illiteracy, and disease.
9. Mozambique – $492
Mozambique is a coastal country in Southern Africa, with a population of about 32 million. It has a GDP per capita of $492 in 2023, making it one of the poorest countries in the world. Mozambique has been recovering from a long civil war that ended in 1992, which left millions of people displaced and infrastructure damaged. The country has also been affected by recurrent droughts, floods, cyclones, and conflicts. Mozambique’s economy is based on agriculture, mining, and tourism, but it faces many challenges such as low productivity, corruption, insecurity, and debt. Mozambique also has high rates of poverty, inequality, illiteracy, and HIV/AIDS.
8. Liberia – $471
Liberia is a West African country with a population of about 5 million. It has a GDP per capita of $471 in 2023, making it one of the poorest countries in the world. Liberia has been recovering from two civil wars that lasted from 1989 to 2003, which killed about 250,000 people and destroyed most of its infrastructure and institutions. The country also faced a devastating Ebola outbreak in 2014-2015, which claimed more than 4,800 lives and disrupted its health system and economy. Liberia’s economy is based on agriculture, forestry, mining, and services, but it suffers from low growth, high inflation, and fiscal deficits. Liberia also struggles with high levels of poverty, unemployment, illiteracy, and violence.
7. Central African Republic – $461
The Central African Republic (CAR) is a landlocked country in Central Africa, with a population of about 5 million. It has a GDP per capita of $461 in 2023, making it one of the poorest countries in the world. The CAR has been plagued by political instability, coups d’état , rebellions , and sectarian violence since its independence in 1960 . The country is currently facing a humanitarian crisis , with more than half of its population in need of assistance and protection . The CAR’s economy is based on agriculture , livestock , forestry , and mining , but it faces many constraints such as poor infrastructure , insecurity , corruption , and lack of diversification . The CAR also has high levels of poverty , malnutrition , mortality , and displacement .
6. Sudan – $453
Sudan is a North African country with a population of about 44 million . It has a GDP per capita of $453 in 2023 , making it one of the poorest countries in the world . Sudan has been undergoing a political transition since the ousting of former president Omar al-Bashir in 2019 , after decades of authoritarian rule , civil wars , and human rights violations . The country is also facing an economic crisis , exacerbated by US sanctions , COVID-19 pandemic , inflation , debt , and shortages . Sudan’s economy is based on oil , agriculture , and trade , but it suffers from low productivity , mismanagement , and dependence on external aid . Sudan also has high levels of poverty , conflict , displacement , and hunger .
5. Somalia – $447
Somalia is a Horn of Africa country with a population of about 16 million . It has a GDP per capita of $447 in 2023 , making it one of the poorest countries in the world . Somalia has been in a state of anarchy and violence since the collapse of its central government in 1991 , which led to the emergence of various armed groups , clans , and factions . The country is also facing a humanitarian crisis , with more than two-thirds of its population in need of assistance and protection . Somalia’s economy is based on livestock , agriculture , remittances , and informal trade , but it faces many challenges such as insecurity , corruption , drought , and locusts . Somalia also has high levels of poverty , illiteracy , disease , and displacement .
4. South Sudan – $400
South Sudan is a landlocked country in East Africa, with a population of about 11 million. It has a GDP per capita of $400 in 2023, making it one of the poorest countries in the world. South Sudan gained its independence from Sudan in 2011, after decades of war and oppression. However, the country soon plunged into a civil war in 2013, which killed tens of thousands of people and displaced millions more. The country is also facing a humanitarian crisis, with more than half of its population in need of assistance and protection. South Sudan’s economy is based on oil, which accounts for more than 90% of its exports and revenues. However, the oil sector is hampered by low production, conflict, corruption, and mismanagement. South Sudan also has high levels of poverty, hunger, malnutrition, and mortality.
3. Afghanistan – $373
Afghanistan is a landlocked country in South Asia, with a population of about 39 million. It has a GDP per capita of $373 in 2023, making it one of the poorest countries in the world. Afghanistan has been ravaged by war and violence for more than four decades, which have left millions of people dead, injured, and displaced. The country is also facing a political and security crisis, following the takeover by the Taliban in August 2021, which triggered a mass exodus and a humanitarian emergency. Afghanistan’s economy is based on agriculture, mining, services, and aid, but it faces many obstacles such as insecurity, corruption, drought, and isolation. Afghanistan also has high levels of poverty, illiteracy, inequality, and human rights violations.
2. Burundi – $311
Burundi is a landlocked country in Central Africa, with a population of about 12 million. It has a GDP per capita of $311 in 2023, making it one of the poorest countries in the world. Burundi has been recovering from a political crisis that erupted in 2015, when former president Pierre Nkurunziza sought a controversial third term in office. The crisis sparked protests, violence, and repression, which claimed hundreds of lives and forced hundreds of thousands to flee. Burundi’s economy is based on agriculture, which employs more than 90% of its population. However, agricultural productivity is low due to poor infrastructure, soil degradation, climate change, and pests. Burundi also faces high levels of poverty, malnutrition , disease , and underdevelopment .
1. Yemen – $302
Yemen is an Arabian Peninsula country with a population of about 30 million . It has a GDP per capita of $302 in 2023 , making it the poorest country in the world . Yemen has been engulfed by a civil war since 2014 , when Houthi rebels seized control of the capital Sanaa and ousted the internationally recognized government . The war has escalated into a regional conflict , involving Saudi Arabia , Iran , and other actors . The war has caused widespread death , destruction , and displacement . The country is also facing a humanitarian catastrophe , with more than 80% of its population in need of assistance and protection . Yemen’s economy is based on oil , gas , agriculture , and trade , but it suffers from collapse , blockade , corruption , and depletion . Yemen also has high levels of poverty , hunger , disease , and instability .
Conclusion
The countries with the lowest GDP per capita in the world are mostly located in Africa and Asia . They share common characteristics such as political instability , conflict , corruption , weak governance , poor infrastructure , and lack of diversification . They also face common challenges such as poverty , hunger , malnutrition , disease , illiteracy , inequality , and human rights violations .
These countries need urgent support from the international community to address their humanitarian crises , promote peace and security , strengthen their institutions and capacities , and foster their economic development and social progress .
10 Most Asked Questions and Answers
Q: Why is GDP per capita important ?
A: GDP per capita is important because it can provide an indication of the standard of living and economic development of a country . It can also help compare the economic performance and well-being of different countries .
Q: What are the limitations of GDP per capita ?
A: GDP per capita has some limitations as a measure of economic and social welfare . It does not account for the differences in the cost of living , income distribution , or quality of life among countries . It also does not capture the environmental , social , or cultural aspects of development . Moreover , it can be distorted by factors such as exchange rates , inflation , population growth , or tax havens .
Q: What are the factors that affect GDP per capita ?
A: GDP per capita is affected by various factors such as natural resources , human capital , physical capital , technology , institutions , policies , trade , and external shocks . These factors can influence the production , consumption , investment , and trade of goods and services in a country .
Q: How is GDP per capita calculated ?
A: GDP per capita is calculated by dividing the total value of goods and services produced in a country by its population . There are different methods to measure the value of goods and services , such as nominal , real , or purchasing power parity (PPP) . Nominal GDP per capita uses current market prices and exchange rates . Real GDP per capita adjusts for inflation and changes in prices over time . PPP GDP per capita adjusts for the differences in the cost of living and purchasing power among countries .
Q: What is the difference between GDP and GNI per capita ?
A: GDP per capita measures the value of goods and services produced within a country’s borders . GNI per capita measures the value of goods and services produced by a country’s citizens , regardless of where they live . GNI per capita can be higher or lower than GDP per capita depending on whether a country has a net inflow or outflow of income from abroad .
Q: Which countries have the highest GDP per capita in the world ?
A: According to the IMF projections for 2023, the top 10 countries with the highest GDP per capita in the world are Monaco ($234,316), Liechtenstein ($169,260), Luxembourg ($133,175), Bermuda ($112,653), Ireland ($101,109), Switzerland ($93,525), Norway ($89,242), Cayman Islands ($85,250), Qatar ($83,891), and United States ($80,034).
Q: Which regions have the lowest GDP per capita in the world ?
A: According to the IMF projections for 2023, the regions with the lowest GDP per capita in the world are Sub-Saharan Africa ($1,671), Middle East and North Africa ($6,487), South Asia ($2,475), Latin America and Caribbean ($8,604), and East Asia and Pacific ($11,512).
Q: How does COVID-19 affect GDP per capita ?
A: COVID-19 has a negative impact on GDP per capita by reducing the production , consumption , investment , and trade of goods and services in many countries . The pandemic also affects the health , education , employment , and income of millions of people . The IMF estimates that global GDP per capita will decline by 4.4% in 2020 and recover by 5.2% in 2021.
Q: How can countries increase their GDP per capita ?
A: Countries can increase their GDP per capita by improving their productivity , efficiency , innovation , and competitiveness in producing goods and services . They can also invest in their human capital , physical capital , technology , infrastructure , and institutions . They can also promote trade , integration , cooperation , and stability with other countries .
Q: What are the challenges faced by the countries with the lowest GDP per capita ?
A: The countries with the lowest GDP per capita face many challenges such as political instability , conflict , corruption , weak governance , poor infrastructure , and lack of diversification . They also face common challenges such as poverty , hunger , malnutrition , disease , illiteracy , inequality , and human rights violations .