Poorest Countries in Europe 2022 (Top 10)

Poorest Countries in Europe: With a surface area of 10,180,000km2, Europe is the second-smallest continent in the world (3,930,000 square miles). The majority of Europe is in the Eastern Hemisphere and is entirely in the Northern Hemisphere. In Europe, there are 50 countries that are recognized by the UN.

Many lists of European nations, however, freely include regions that technically belong on the list as countries but aren’t because they aren’t recognized by the U.N. Kosovo, for instance, is a region that some people consider independent and others who believe it to be a part of Serbia.

According to assets under management, the European Union has the largest economy in the world and is also one of the richest.

For instance, is in Germany. The level of economic prosperity in Europe varies greatly between nations, though. The top 10 poorest countries in Europe today are typically those in Eastern Europe, especially those that suffered greatly from the collapse of the Soviet Union.

The recent report of the IMF assessment says the GDP per capita is US$21,767. Using data from the International Monetary Fund assessments, we have compiled a list of the 10 poorest countries in Europe.

List of  the top 10 poorest Countries in Europe with their GDP Per Capita 2022

1. Ukraine-3,726 USD
2. Moldova-4,551 USD
3. Albania-5,215 USD
4. Northern Macedonia-5,888 USD
5. Bosnia and Herzegovina-6,031 USD
6. Belarus-6,411 USD
7. Serbia-7,666 USD
8. Montenegro-7,686 USD
9. Bulgaria-9,975 USD
10. Romania-12,896 USD

How to measure the wealth of a nation

Gross Domestic Product (GDP) is the gold standard used by economists and politicians around the world to assess and rank the wealth of nations. There are, however, increasing calls to find GDP substitutes to measure countries’ wealth and welfare as more economists start to doubt GDP’s true value.

What is GDP

Gross domestic product (GDP) is the total market value of all finished goods and services produced in a nation at any given time, most notably over the course of a single year. It serves as a thorough scorecard of a particular country’s economic prosperity because it is a broad measurement of all domestic production of goods and services within that country.

How to determine a country’s GDP

A country’s estimated total value of all the goods and services it produced over a given time period, typically a quarter or a year, is known as its gross domestic product (GDP).

The best way to use it is as a benchmark: Did the country’s economy expand or contract when compared to the previous measurement period?

GDP is calculated as follows: GDP = C + I + G + (X-M). Consumer spending is represented by C, business investment by I, government spending by G, and net exports by (X-M).

Watch the video below to see how GDP is been calculated and how to use it to determine the wealth of any country.

Top 10 Poorest Countries in Europe 2022

The table below shows the ranking order of the top 10 poorest countries in Europe 2022, which include their name and the GDP Per Capita of an individual in the continent.

Top 10 Poorest Countries in Europe 2022

1. Ukraine-3,726 USD

As of 2022, Ukraine is the poorest country in Europe, with a per capita GDP of 3,726 USD.

The country at one point was the second-largest economy in the USSR. But shortly after the collapse of the USSR on 26 December 1991, a large portion of the Ukraine population fell into poverty as a result of the country’s struggles to transit into a market economy.

READ MORE: Top 10 Most Powerful Countries in Europe (2022)

Ukraine War

On February 24, 2022, Russian President Vladimir Putin issued a military order for an operation in eastern Ukraine. More than 1.3 million people have fled Ukraine as a result of the ongoing conflict between Russia and Ukraine, one of the fastest migration rates ever in such a short period of time.

An estimated 3 million Ukrainians are in desperate need of humanitarian aid as a result of the protracted war that has been raging in that country for many years. This conflict has resulted in more than 850,000 internal displacements.

Unjustified deaths, extensive infrastructure damage, and extensive internal and international migration were all effects of the war. The US and its allies have imposed harsh economic sanctions on Russia, but they have refused to give Ukraine, which is not a member of NATO (North Atlantic Treaty Organization), any military assistance.

War: Zelensky of Ukraine and Vladimir Putin of Russia

2. Moldova-4,551 USD

Moldova, with a per capita GDP of 4,551 USD, is one of the top 10 poorest countries in Europe. Moldova, a former USSR member, experienced political unrest, economic decline, trade barriers, and other difficulties after the Soviet Union’s collapse in 1991.

Lack of extensive industrialization, food insecurity, the collapse of the economy during the shift to a market economy, mistakes in social policy, and other factors all play a role in the country’s high rate of poverty.

The proportion of the population living below the national poverty line decreased from 30.2% to 9.6% between 2006 and 2015, demonstrating Moldova’s progress despite recent challenges.

The government had liberalized all prices, stopped giving preferential credits to state-owned enterprises, introduced a convertible currency, supported steady land privatization, removed export controls, and liberalized interest rates in order to strengthen the economy of Moldova.

3. Albania-5,215 USD-Poorest Countries in Europe

The per capita GDP of Albania is 5,215 USD. Albania transitioned from a socialist to a capitalist market economy following the fall of the USSR in 1991.

Despite being the third-poorest country in Europe, its economy is growing steadily. This is largely a result of Albania’s abundant natural resources, which include oil, natural gas, and minerals like limestone, iron, and coal.

Its largest trading partners are Italy, Greece, China, Spain, Kosovo, and the United States, and it has the fourth-lowest unemployment rate in the Balkans.

4. Northern Macedonia-5,888 USD

On the list of the top 10 poorest countries in Europe, North Macedonia, which attained its independence in 1991, is listed fourth.

The economy of North Macedonia, which has a GDP per capita of 5,888 USD as of late, has undergone a significant transformation. Over 90% of the nation’s GDP is derived from trade.

Despite the North Macedonian government’s successful reforms, the country has a high unemployment rate of about 16.6%. With a 38.7% unemployment rate at one point, North Macedonia held the record.

5. Bosnia and Herzegovina-6,031 USD-Poorest Countries in Europe

Bosnia and Herzegovina, also known as BiH or B&H, has a per capita GDP of 6,031 USD and is the fifth poorest country in Europe. Bosnia’s wartime history is the single biggest contributor to the country’s poverty.

After waging a war of independence against Yugoslavia that lasted from early 1992 until late 1995, the nation is still battling to rebuild.

The country’s population, infrastructure, and economy suffered greatly as a result of the war and the ethnic cleansing that it brought about.

When the fighting ended, one in every four households had become headed by women due to the high number of casualties.

Due to the fact that women make up a smaller portion of the workforce and frequently earn less than men in Bosnia and Herzegovina, this disadvantages many families. As a result, a lot of families experienced poverty.

6. Belarus-6,411 USD

Following the fall of the USSR, Belarus experienced economic problems similar to those experienced by other former Soviet republics which made her the sixth poorest country in Europe.

Prior to that, Belarus had one of the best economies and the highest living standards among the Soviet republics. Belarus experienced economic and financial hardship in the years that followed until 1996 when things started to improve.

Belarus’s bottom 40% of the population saw an increase in spending between 2006 and 2011 when the recession affected many nations in Europe. The nation’s GDP per capita is 6,411 USD.

7. Serbia-7,666 USD

With a 7,666 USD GDP per capita, Serbia ranks seventh among the top 10 poorest countries in Europe.

Beginning in the early 2000s, Serbia experienced eight years of strong economic growth. But due to the global financial crisis which affected mostly all the countries in Europe, Serbia’s economy too also experienced negative growth in 2009.

This negative growth in her economy resulted in an increase in the nation’s external debt to 63.8% of GDP. The economic development of Serbia is hampered by the likelihood of natural disasters like earthquakes and floods.

However, sectors like food and energy production are strong and robust and they have all contributed to Serbia’s economic situation which is now getting better and having a good improvement.

8. Montenegro-7,686 USD

The GDP per capita of Montenegro is 7,686 USD. Energy-related industries play a significant role in Montenegro’s small but important economy.

The nation is now more vulnerable to resource depletion as a result of urbanization and deforestation that have eroded its natural resources. A significant income gap is also a result of age and gender discrimination, especially for women.

The population is made up of about 50,000 internally displaced people and refugees. Their poverty rate is approximately six times higher than the 8.6% national average, making them one of the top 10 poorest countries in Europe.

9. Bulgaria-9,975 USD-Poorest Countries in Europe

With a per capita GDP of 9,975 USD, Bulgaria is the ninth poorest countrieis in Europe. In an effort to become a free-market democratic economy after losing its primary soviet market in the 1990s, Bulgaria suffered further economic damage.

During the global financial crisis of 2008, Bulgaria was once more severely impacted. According to IMF research, more than 41% of Bulgaria’s population is at risk of living in poverty, making the country’s economy vulnerable.

Numerous economic indicators support this fact. For instance, the minimum wage in Luxembourg is 2,256.95 euros per month, compared to 330 euros in Bulgaria in 2022.

Bulgarians earn an average monthly after-tax income of just over 590 euros. The nation’s problems with organized crime and corruption are not fully resolved.

However, the government is creating a liberal market economy and taking the necessary steps to enhance the business environment in Bulgaria.

10. Romania-12,896 USD

Romania occupies the bottom spot in the list of the top 10 poorest countries in Europe. The GDP per capita in Romania, which gets its name from the Latin name Romanus, is 12,896 USD.

Romania joined the European Union back in 2007, similar to how Bulgaria did. Romania was left with a sizable but dated industrial base as a result of its communist past. Numerous industries were forced to close their doors or undergo complete modernization as a result of the market economy and new trade relations.

The minimum monthly wage in Romania in 2022 will be 515 euros, and the average monthly salary after taxes will be about 695 euros.

READ MORE: How to Live and Work in Europe

Expected GDP Per Capita for the Poorest Countries in  Europe at the end of 2022

The table below provides an estimate of the GDP by the end of 2022 for some of the poorest countries in Europe, according to the International Monetary Fund.

Summary

Top 10 Poorest Countries in Europe 2022

The table below shows the ranking order of the poorest countries in Europe 2022, which include their name and the GDP Per Capita of an individual in the continent.