Tag: WorldBank

Ranking the World’s 35 Poorest Countries by GDP Per Capita in 2024

Staff ReporterWorld 0

Global Economy and Poverty

The post-COVID-19 economic crisis has significantly impacted the world’s poorest countries, causing high inflation and interest rates. Extreme poverty, defined by the international poverty line of $2.15, increased from 8.9% in 2019 to 9.7% in 2020, marking the first rise in global poverty in decades. The World Bank attributes the surge in 2020 largely to South Asia, where extreme poverty jumped to 13% between 2019 and 2020. Conversely, poverty fell in East Asia, the Pacific, Latin America, and the Caribbean at a higher poverty line of $3.65. In Europe, Central Asia, and advanced countries, poverty was low at the international poverty line of $6.85. By 2022, global poverty remained slightly above pre-pandemic levels, though it was on a declining trend. There were nearly 23 million more people living in extreme poverty in 2022 compared to 2019.

Poverty projections for 2024 at $3.65 and $6.85 have been revised down for Syria and Uzbekistan by 0.7 and 0.6 percentage points, respectively, reducing global poverty counts by 52 and 44 million. The global extreme poverty rate has been adjusted slightly by 0.1 percentage points to 8.9% from 2019, changing the count of poor people from 701 million to 689 million by 2024. Despite an increase in extreme poverty in Sub-Saharan Africa by 14 million, the global poverty rate has reduced.

The 2023 Global Multidimensional Poverty Index by the UNDP highlights that 25 countries halved multidimensional poverty within the last 15 years. However, around 1.1 billion people out of the world’s 6.1 billion remain poor. Of these, 534 million live in Sub-Saharan Africa, and 566 million are under 18. Approximately 485 million people live in extreme poverty, facing 50-100% of weighted deprivations. Many of the least developed African countries are also the poorest.

How Nestlé Helps in Improving Livelihoods

Nestlé (OTC:NSRGY), a Switzerland-based multinational corporation in the food and drinks industry, is the world’s largest food company with a market cap of about $274.53 billion as of July 7. Nestlé is actively contributing to the United Nations Sustainable Development Goals (SDGs) to combat global issues such as poverty, inequality, and climate change. The company aims to support nearly 10 million young people with economic opportunities by 2030. In 2023, about 10,000 families participated in Nestlé’s income accelerator program in cocoa production.

In partnership with the World Economic Forum, Nestlé launched its Income Accelerator Programme in 2022, incorporating the International Cocoa Initiative, the Sustainable Trade Initiative, and the Rainforest Alliance. Nestlé offers up to €500 annually to households participating in the program. Through improved agricultural practices, Nestlé has increased cocoa production by 20%, yielding nearly 130 kg of cocoa per hectare. Families use the income to cover healthcare and schooling costs, resulting in an 8% improvement in school enrollment rates.

For the quarter ending March 31, 2024, Nestlé reported total sales of around $24.7 billion, down from $26.3 billion year-over-year, with a negative Real Internal Growth (RIG) of 2%. However, the company anticipates better performance in the subsequent quarters and projects an organic sales growth of about 4% for 2024. Underlying earnings per share in constant currency are expected to rise between 6% and 10%.

Nestlé’s diversified product portfolio enables it to leverage growth opportunities in developing countries, which contribute approximately 40% of its turnover. The company’s product categories include powdered and liquid beverages (26.64%), PetCare (18.9%), nutrition and health science (15.3%), prepared dishes and cooking aids (11.7%), milk products and ice cream (11%), confectionaries (8.7%), and water (3.3%).

Nestlé’s stock is trading at $106 as of July 17, with analysts’ median price target indicating an 11.55% upside. The stock trades at 19 times its forward earnings, a 17.26% discount to its five-year average of 23.06.

Our Methodology

To compile our list of the 35 poorest countries by GDP per capita in 2024, we sourced data from the International Monetary Fund (IMF). For countries without available GDP per capita data from the IMF, we used the World Bank database. Our list ranks the 35 poorest countries by GDP per capita for 2024 in ascending order.

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Ranked: The 35 Poorest Countries by GDP Per Capita in 2024

  1. Benin

– GDP Per Capita (2024): $1,512

– Benin faces educational inequality and political instability, contributing to widespread poverty.

  1. Timor-Leste

– GDP Per Capita (2024): $1,454

– Timor-Leste grapples with water issues and extreme climate changes.

  1. Zambia

– GDP Per Capita (2024): $1,413

– Zambia, geographically isolated, experiences extreme poverty.

  1. Pakistan

– GDP Per Capita (2023): $1,407

– Pakistan, amid economic and political crises, ranks 32nd.

  1. Nepal

– GDP Per Capita (2024): $1,397

– Nepal, with a GDP of $44.18 billion, has a population of 30.89 million.

  1. Comoros

– GDP Per Capita (2024): $1,384

– Almost 45% of Comoros’ population lives below the national poverty line.

  1. Tajikistan

– GDP Per Capita (2024): $1,271

– In Tajikistan, 1.6% of the employed population lives below the $1.90 daily purchasing power parity.

  1. Myanmar

– GDP Per Capita (2024): $1,248

– Myanmar’s GDP stands at $68.01 billion.

  1. Tanzania

– GDP Per Capita (2024): $1,220

– Around 76% of Tanzania’s population relies on rain-fed agriculture.

  1. Uganda

– GDP Per Capita (2024): $1,202

– Uganda suffers from political instability, corruption, and income inequality.

  1. Nigeria

– GDP Per Capita (2024): $1,110

– Nigeria, with the world’s sixth-largest population, faces several challenges including corruption and unemployment.

  1. Lesotho

– GDP Per Capita (2024): $1,107

– Lesotho’s GDP is $2.4 billion.

  1. Guinea-Bissau

– GDP Per Capita (2024): $1,087

– Guinea-Bissau’s GDP is around $2.15 billion.

  1. Togo

– GDP Per Capita (2024): $1,058

– Togo struggles with political instability and economic issues.

  1. Chad

– GDP Per Capita (2024): $1,014

– Chad’s GDP is $18.7 billion, with various economic challenges.

  1. Eritrea

– GDP Per Capita (2023): $1,013

– Eritrea’s poverty rate is 40%, expected to decrease by 13% by 2040.

  1. The Gambia

– GDP Per Capita (2024): $989

– The Gambia faces economic issues including climate change and limited resources.

  1. Rwanda

– GDP Per Capita (2024): $988

– Rwanda has a GDP of $13.7 billion.

  1. Burkina Faso

– GDP Per Capita (2024): $910

– Burkina Faso’s GDP per capita is $910, with limited natural resources.

  1. Mali

– GDP Per Capita (2024): $899

– Mali’s poverty rate exceeds 20%.

  1. Liberia

– GDP Per Capita (2024): $855

– Liberia’s GDP is $4.75 billion.

  1. Somalia

– GDP Per Capita (2024): $776

– Somalia’s GDP is $12.8 billion.

  1. Democratic Republic of the Congo

– GDP Per Capita (2024): $715

– The DRC has a GDP of $73.76 billion.

  1. Niger

– GDP Per Capita (2024): $670

– Niger’s economy relies heavily on agriculture.

  1. Mozambique

– GDP Per Capita (2024): $659

– Despite past economic growth, Mozambique faces poverty and unemployment.

  1. Sudan

– GDP Per Capita (2024): $547

– Sudan struggles with conflicts, illiteracy, and environmental challenges.

  1. Madagascar

– GDP Per Capita (2024): $538

– Madagascar’s GDP is $16.47 billion.

  1. Central African Republic

– GDP Per Capita (2024): $512

– The CAR’s GDP is $3.14 billion.

  1. Malawi

– GDP Per Capita (2024): $464

– Malawi’s GDP is $10.17 billion.

  1. Afghanistan

– GDP Per Capita (2024): $463

– Afghanistan faces political instability and economic hardship.

  1. Yemen

– GDP Per Capita (2024): $416

– Yemen’s GDP is $16.78 billion.

  1. Sierra Leone

– GDP Per Capita (2024): $371

– Sierra Leone’s GDP is $5.75 billion.

  1. Madagascar

– GDP Per Capita (2024): $538

– Despite economic potential, Madagascar faces high poverty rates.

  1. Syria

– GDP Per Capita (2024): $332

– Syria’s economy is heavily affected by conflict.

  1. Burundi

In 2024, Burundi’s GDP per capita stands at a mere $230, making it the poorest country in the world by this measure. As a landlocked nation with a low-income economy, nearly 80% of its population is engaged in agriculture, making the economy particularly susceptible to climate-related risks. As of 2021, about 75.1% of Burundians live in multidimensional poverty, with another 15.8% on the brink. With a total population of 13.23 million and a GDP of approximately $3.08 billion, Burundi faces severe economic challenges.

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India’s Economy: A Beacon of Growth in a Turbulent World

Dr. Joseph Chalil & Badal ShahEconomy, Global 0

Amidst a choppy global landscape, India’s economic trajectory shines with the vibrancy of a beacon, defying headwinds and emerging as one of the fastest-growing major economies in FY22/23 with a remarkable 7.2% growth rate. This feat, as highlighted by the World Bank’s India Development Update (IDU), positions India as a testament to resilience, surpassing global benchmarks and offering valuable lessons for the world.

The IDU underscores India’s economic fortitude in the face of significant global challenges, citing the nation’s growth rate as the second-highest among G20 countries, nearly double the average for emerging market economies. This commendable achievement, the report suggests, stems from India’s robust domestic demand, substantial public infrastructure investment, and the strengthening of the financial sector.

“India’s economic performance is truly remarkable,” declares Kristalina Georgieva, Managing Director of the International Monetary Fund. “Showcasing its robust domestic engine amidst global uncertainties, this growth story, fueled by smart policy interventions and a vibrant private sector, offers valuable lessons for the world.”

Bank credit growth, a pivotal indicator of economic vitality, surged to 15.8% in the first quarter of FY23/24, compared with 13.3% in the corresponding period of FY22/23, indicating a robust financial landscape supporting economic expansion.

India’s economic ascent is far from over. By capitalizing on its strengths, mitigating future challenges, and adopting smart policy measures, India has the potential to become a global economic powerhouse. As Auguste Tano Kouame, World Bank’s Country Director in India, aptly states, “Tapping public spending to attract private investments will create favorable conditions for India to seize global opportunities and achieve even higher growth.

In addressing the spike in headline inflation, the report notes adverse weather conditions as a contributing factor. Headline inflation rose to 7.8% in July, primarily due to increased prices of food items like wheat and rice. Senior Economist and lead author of the report, Dhruv Sharma, anticipates a gradual decrease in inflation as government measures boost the supply of key commodities, ensuring a conducive environment for private investment.

The report also sheds light on India’s fiscal consolidation, projecting a decline in the central government fiscal deficit from 6.4% to 5.9% of GDP in FY23/24. Public debt is expected to stabilize at 83% of GDP, indicating prudent fiscal management. On the external front, the current account deficit is anticipated to narrow to 1.4% of GDP, supported by foreign investment flows and robust foreign reserves.

“India’s handling of the pandemic has been a masterclass in crisis management,” observes Hardeep Puri, Director-General of the World Trade Organization. “Its proactive approach, combined with decisive policy measures, helped mitigate economic damage and paved the way for a faster rebound.”

As the world grapples with economic uncertainties, India’s economic story serves as a testament to the nation’s resilience, foresight, and strategic economic policies. The international community recognizes India’s steadfast commitment to sustaining growth even amidst unprecedented challenges. In the words of global leaders, the remarkable growth of India’s economy stands as a beacon of hope and inspiration for nations around the world, reaffirming India’s status as a key player in the global economic landscape.

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