30 Countries With the Lowest GDP Per Capita in the World

Ali Hassan
11 min read

In This Article:

In this article, we will be taking a look at the 30 countries with the lowest GDP per capita in the world. To skip our detailed analysis, you can go directly to see the 5 Countries With the Lowest GDP Per Capita in the World.

Global Economic Outlook

The predictability of the global economy is difficult at the moment with various economic and geopolitical issues such as inflation and higher interest rates in the US and EU countries, the property market crisis and deflation in China, the Russia-Ukraine war, and the conflict in the Middle East, are among the major occurrences. On one hand, there are countries with high inflation rates, then on the other hand, there are countries with deflation or dangerously low inflation. One of the biggest economic debates right now is the US Federal Reserve potentially cutting the interest rates in the second half of 2024. The slowing of inflation in the US has been unexpectedly smooth so far, with mild economic growth and not a drastic increase in the unemployment rate. However, price increases have been a question mark as global supply chain disruptions increase following the Yemeni Houthi attacks in the Red Sea. 

On March 19, The New York Times reported that price increases have continued to hover around 3.2% for five months now. That raises questions about the approach of the Fed against fighting inflation. According to Vanguard’s global chief economist, Joseph Davis, the Fed should not be in a hurry to cut rates as the economy has held up better than expected. Davis further said, “We have a growing probability that they don’t cut rates at all this year”. However, investors are a little optimistic about the Fed keeping rates at their current 5.3% through 2024. The chief economist at KPMG US, Diane Swonk, pointed out that the Fed officials are likely to debate on whether inflation can continue to cool in the upcoming meeting on March 20, 2024. Swonk addressed the key point stating:

“The worry is that the low-hanging fruit associated with a healing of supply chains and drop in goods prices has been plucked, while a floor may be forming under service sector prices.”

Investors expect central banks to cut rates three times to around 4.6% by the end of 2024. On March 14, CNBC reported that the European Central Bank (ECB) chief economist, Philip Lane, said that the ECB must take time to get interest rate cuts right. Lane believes that the central bank will have a clearer picture of inflationary pressures in June 2024. During the March 2024 meeting, the ECB held rates and lowered the inflation projection for 2024 to 2.3% from the previous forecast of 2.7%. Here is what Lane told CNBC’s Steve Sedgwick:

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