Poorest countries in the world in 2025: understand the indicators that define global poverty

When we look at the nations facing the greatest economic challenges, important questions arise about what truly defines a country as poor. This year, organizations like the World Bank and the IMF continue updating their indicators to measure income and development. But what would be the poorest country in the world? The answer depends heavily on how we measure that poverty.

How is a country’s poverty measured?

The most commonly used metric by international institutions is GDP per capita adjusted for purchasing power (PPC). Unlike other measurements, this indicator divides all the wealth produced by a country by its population, taking into account the local cost of living.

Why does this matter? Because it allows for fairer comparisons between nations with different currencies and varying price levels. Although it does not fully capture social inequality or the quality of public services, GDP per capita remains one of the most reliable tools for measuring the average income level and understanding poverty levels across different regions.

The ranking of the poorest countries in the world

The latest data shows a clear concentration: most of the poorest countries are in Sub-Saharan Africa, with some cases also in regions of prolonged conflict.

Position | Country | GDP per capita (US$) 1 | South Sudan | 960 2 | Burundi | 1,010 3 | Central African Republic | 1,310 4 | Malawi | 1,760 5 | Mozambique | 1,790 6 | Somalia | 1,900 7 | Democratic Republic of the Congo | 1,910 8 | Liberia | 2,000 9 | Yemen | 2,020 10 | Madagascar | 2,060

These numbers reveal deeply fragile economies, where the average annual income is extremely low.

Why do these countries remain among the poorest?

Despite cultural and geographical differences, these nations share similar structural challenges that hinder any lasting economic progress.

Political instability and prolonged conflicts

Internal wars, coups, and ongoing violence weaken institutions, deter investors, and damage essential infrastructure. South Sudan, Somalia, Yemen, and the Central African Republic exemplify this problem perfectly.

Economies with low diversification

Most of these countries rely solely on subsistence agriculture or the sale of primary commodities. Without a strong industry or developed service sector, they are vulnerable to external shocks and unforeseen climate variations.

Insufficient investment in education and health

Limited access to quality education, healthcare, and sanitation significantly reduces the productivity of the population, compromising future economic growth.

Rapid population growth

When the population grows faster than the economy, GDP per capita stagnates or even decreases, even if total GDP increases in absolute numbers.

Analyzing the world’s poorest nations

South Sudan: resources without stability

The poorest country today suffers from civil conflicts since its independence. Despite significant oil reserves, the lack of political stability prevents this wealth from reaching the population.

Burundi: agriculture without productivity

With a predominantly rural economy, Burundi faces decades of political turbulence. Low agricultural productivity and concerning human development indicators keep it among the worst global indices.

Central African Republic: wasted minerals

Despite abundant mineral resources, ongoing internal conflicts, mass displacement, and the collapse of public services prevent any exploitation of these natural riches.

Malawi: vulnerable to climate change

Highly dependent on agriculture and exposed to recurrent droughts, Malawi suffers from low industrialization and rapid demographic growth that worsens the economic situation.

Mozambique: unrealized potential

Despite significant energy and mineral potential, the country still faces structural poverty, regional conflicts, and a lack of economic diversification.

Somalia: the absence of a state

After decades of civil war, Somalia has fragile state institutions, chronic food insecurity, and a predominantly informal economy.

Democratic Republic of the Congo: wealth that benefits no one

With vast mineral reserves of global importance, armed conflicts, widespread corruption, and poor governance prevent the population from benefiting from this natural wealth.

Liberia: scars of civil war

The impacts of civil wars still reverberate in the economy, combined with poor infrastructure and virtually nonexistent industrialization.

Yemen: outside Africa but in humanitarian crisis

The only country on the ranking outside the African continent, Yemen faces one of the worst global humanitarian crises since the civil war began in 2014.

Madagascar: underutilized tourism potential

Despite having considerable agricultural and tourism potential, recurring political instability, rural poverty, and low economic productivity limit development.

What the world’s poorest country tells us about the global economy

Identifying the poorest country in the world goes far beyond naming a place in a ranking. These data reveal how conflicts, institutional fragility, and lack of structural investments hinder long-term economic development.

Understanding this global economic reality — including which countries are the poorest — helps analysts, investors, and market observers see risks, macroeconomic cycles, and opportunities more clearly.