Which countries in Europe face the greatest economic challenges? Despite the continent’s overall wealth, some nations struggle with poverty due to historical, political, and economic factors. This blog explores the poorest countries in Europe, highlighting their struggles, resilience, and ongoing efforts to improve living standards and economic stability.
List of 9 Poor Countries in Europe
- Ukraine
- Moldova
- Albania
- North Macedonia
- Bosnia and Herzegovina
- Belarus
- Serbia
- Montenegro
- Bulgaria
Source of list and data: https://www.datapandas.org/ranking/poorest-countries-in-europe
Disclaimer: Best Diplomats is not an expert in this particular field. This data is taken from several credible sources.
1- Ukraine
Ukraine is currently facing significant economic challenges that have contributed to its status as the poorest country in Europe in 2024. GNI Per Capita of Ukraine is $3.5k, significantly lower than the European average. This is largely due to the ongoing conflict in eastern Ukraine, which has disrupted economic activity and investment in the country.
Unemployment rates in Ukraine have also remained high, with the latest figures showing an unemployment rate of around 10%. This is partly due to the uneven distribution of wealth and resources in the country, with a small elite benefiting disproportionately from the country’s economic activities.
Economic growth rates in Ukraine have been relatively static in recent years, with the country’s GDP growth rate estimated at around 2% in 2024. This slow growth has made it difficult for the country to catch up to its European neighbors and improve the living standards of its citizens.
Ukraine’s ranking on the Human Development Index (HDI), a measure of a country’s overall development, has also remained relatively low, with the country ranked around 100th out of 193 countries in 2024. This reflects the country’s challenges in areas such as education, healthcare, and overall quality of life.
2- Moldova
Moldova is currently the second poorest country in Europe as of 2024. GNI Per Capita in Moldova is estimated to be around $4.6k in 2024. This is partly a result of the country’s reliance on agriculture and remittances from Moldovans working abroad, which have been impacted by the spillover effects of the war in Ukraine.
Unemployment rates in Moldova have remained high, with the latest figures showing an unemployment rate of around 7%. Income inequality is another major issue in Moldova and Economic growth rates have also been relatively below average in recent years, with the country’s GDP growth rate estimated at around 2.6% in 2024.
The Human Development Index (HDI) of Moldova for 2024 is 0.767, placing the country in 86th out of 193 countries. This index measures national progress in health, education, and living standards.
3- Albania
Albania, a country located in the Balkan Peninsula, has been struggling with economic challenges. Albania’s GDP is estimated to be around $59 billion. The GNI Per Capita is $5.2k in 2024.
The unemployment rate in Albania has been a persistent issue, with an average rate of 12.90% from March 2012 to September 2023. The rate dropped to 10.54% in September 2023, but it remains a concern for the government and the economy.
Albania’s economic growth rate has been moderate, with an average annual growth rate of 2.7% over the last decade. The country’s long-term economic growth rate is projected to trend around 0.50% in 2025 and 0.40% in 2026.
Albania’s Human Development Index (HDI) ranking has been declining in recent years. In 2020, the country ranked 67th out of 189 countries, with a score of 0.796. Albania’s low ranking also reflects the country’s challenges in providing quality education and healthcare to its citizens.
4- North Macedonia
North Macedonia’s position as the third poorest country in Europe in 2024 is influenced by economic, social, and developmental challenges that have jeopardized its progress and prosperity.
North Macedonia’s GNI Per Capita, stood at around $ 5.7K in 2024. The country also grapples with persistently high unemployment rates, with recent data showing an unemployment rate of approximately 14.5%.
North Macedonia has experienced modest economic growth, with a 1.6% expansion in the economy in the latter part of 2023. North Macedonia is ranked 78th out of 189 countries in the 2024 Human Development Index, with a score of 0.770.
This ranking reflects a slight decline from previous years and underscores the importance of addressing key development indicators related to health, education, and living standards.
5-Bosnia and Herzegovina
Bosnia and Herzegovina, a country in the Balkans, is one of the poorest countries in Europe. This precarious situation can be attributed to a confluence of factors, including GDP per capita, unemployment rate, economic growth rates, and Human Development Index rankings.
According to the latest projections, Bosnia and Herzegovina’s GNI Per Capita is $6.1K. In the first quarter of 2024, Bosnia and Herzegovina reported an unemployment rate of 16.9%. This rate indicates a substantial portion of the population facing difficulties in securing stable employment.
Bosnia and Herzegovina’s economic growth rates have been even worse. Its economy expanded by around 3% in recent years but Factors such as geopolitical tensions, supply chain disruptions, and the impact of the COVID-19 pandemic have all contributed to the country’s economic volatility.
Bosnia and Herzegovina‘s Human Development Index (HDI) ranking has seen a decline in recent years, with the country placed 75th out of 203 countries in 2021. The country continues to face significant hurdles in reducing unemployment, achieving sustained economic growth, and improving the overall well-being of its population.
6- Belarus
Belarus’s GDP is estimated to be around $252 billion and its GNI Per Capita is $6.3K in 2024. The unemployment rate in Belarus is another reason behind its poverty, with an average rate of 0.70% from October 2004 to February 2024. The rate dropped to 0.10% in February 2024.
The economy of Belarus has grown at an average level over the past ten years with an average of 2.34% annually. The country’s economic growth expanded by 3.90% in 2023, following a 4.70% contraction in 2022.
Belarus’s Human Development Index (HDI) ranking has been declining in recent years. In 2020, the country ranked 69th out of 193 countries. The country needs to focus on creating more job opportunities, reducing income inequality, and improving its economic growth rates.
7- Serbia
Serbia, with a population of 6.664 million people, is regarded as one of the poorest countries in Europe in terms of GDP per capita, but it is not the poorest.
In 2024, Serbia’s GNI Per Capita is $7.4K. While this is relatively low compared to other European countries, it is higher than the poorest countries in Europe, such as Ukraine and Moldova.
Serbia’s unemployment rate reached a historic low of 8.9% in 2021, despite an increase in the size of the labor force to 55% in recent years. This is a significant improvement from the country’s economic struggles in the past.
Serbia’s baseline economic growth rate is expected to reach 3.5% in 2024. In terms of the Human Development Index, the Country ranked 65th out of 193 countries with a score of 0.805 in 2022.
8- Montenegro
Montenegro, with a population of 617,213 people, is considered the 8th poorest country in Europe. Montenegro’s GNI Per Capita is 7.9K in 2024.
Montenegro’s unemployment rate has also been extremely low recently, with a historic low of 8.9% in 2021. The World Bank announced that it is increasing its estimate of Montenegro’s economic growth to 3.4% in 2024 from the previous 3.2% expansion.
In terms of human development, Montenegro maintains its position among the category of countries with very high human development, ranking 49th out of 189 countries.
According to the World Bank data, the poverty headcount ratio at the national poverty line was 21.2% in 2020 and it’s projected to decline by 1.5 percentage points from 2023 to 7.5% in 2026.
9- Bulgaria
Bulgaria’s economic situation in 2024 presents a complex scenario, with various indicators reflecting both progress and challenges. According to Stats, Bulgaria’s GNI Per Capita is $9.5K in 2024. The country has been working towards economic growth and stability.
The unemployment rate in Bulgaria is forecasted to be 4.40% in 2024 which indicates a relatively stable employment situation. With a peak labor force participation rate of 74.13% in 2022, Bulgaria demonstrated a highly engaged labor force.
Bulgaria’s GDP is expected to grow by 1.9% in 2024 and by 2.5% in 2025. On the other hand, Bulgaria’s Human Development Index (HDI) score has also shown improvement over the years. In 2021, it was placed at 68th place in the table of 191 countries with a score of 0.795.
| No | Country | GNI Per Capita 2024 |
| 1 | Ukraine | $3.5K |
| 2 | Moldova | $4.6K |
| 3 | Albania | $5.2K |
| 4 | North Macedonia | $5.7K |
| 5 | Bosnia and Herzegovina | $6.1K |
| 6 | Belarus | $6.3K |
| 7 | Serbia | $7.4K |
| 8 | Montenegro | $7.9K |
| 9 | Bulgaria | $9.5K |
Conclusion
What can be done to uplift the poorest countries in Europe? Addressing poverty requires strategic investments, policy reforms, and international support. By tackling inequality and fostering economic growth, these countries can pave the way for a brighter future, proving that resilience and determination can overcome even the toughest challenges.
FAQs
What Is Europe’s Poorest Country?
Ukraine is the poorest country in Europe right now. The country has a GNI of 3.5K in 2024.
What Is the Top 10 Poorest Country in Europe?
The top 10 poorest countries in Europe are:
- Ukraine
- Moldova
- Albania
- North Macedonia
- Bosnia and Herzegovina
- Belarus
- Serbia
- Montenegro
- Bulgaria
- Russia
What Is the Lowest Income Country in Europe?
Ukraine has the lowest median disposable income in Europe, with a GNI of $3.5K in 2024. This is significantly below the EU average of €18,706, highlighting income disparities within the region.
Who Has the Highest Poverty Rate in Europe?
Bulgaria has the highest poverty rate in Europe, with significant challenges in combating income inequality. Despite improvements in overall economic indicators, many citizens face poverty and low living standards.
