Poorest Countries in Europe

20 Poorest Countries in Europe

1. Ukraine
2. Kosovo
3. Albania
4. Moldova
5. North Macedonia
6. Bosnia and Herzegovina
7. Montenegro
8. Bulgaria
9. Belarus
10. Serbia
11. Romania
12. North Cyprus
13. Greece
14. Lithuania
15. Latvia
16. Spain
17. Poland
18. Estonia
19. Croatia
20. Hungary

1. Ukraine

Gross National Income Per Capita: $4,535

Poverty Rate: 24.2%

At Risk of Poverty: 31.1%

Ukraine is the poorest country in Europe. Its poverty rate has increased by over 400% since war broke out in the country in 2022. Political instability, corruption, and conflict in Eastern Ukraine have hampered economic growth. High inflation rates, low wages, and reliance on outdated industries further exacerbate Ukraine's economic woes. 

Although it is the largest country entirely within Europe, Ukraine faces significant economic hardships despite its vast resources and potential.

2. Kosovo

Gross National Income Per Capita: $5,590

Poverty Rate: 23%

At Risk of Poverty: 27.9%

As one of Europe's youngest countries, Kosovo grapples with numerous economic challenges. The Kosovo War's aftermath created political instability and ethnic tensions. This slowed economic progress in the country. High levels of unemployment, especially among youth, and a lack of foreign investment also hinder Kosovo's economic growth. Moreover, issues such as corruption and organized crime hamper efforts to improve the business environment.

3. Albania

Gross National Income Per Capita: $6,810

Poverty Rate: 22%

At Risk of Poverty: 29.6%

Despite recent economic growth, Albania remains one of Europe's poorest countries. Legacy issues from communist rule, weak institutions, and high levels of informal employment contribute to Albania's economic struggles. While progress has been made in infrastructure development and attracting foreign investment, unemployment and emigration remain pressing issues.

4. Moldova

Gross National Income Per Capita: $5,725

Poverty Rate: 17.9%

At Risk of Poverty: 26.7%

Situated in Eastern Europe, Moldova consistently ranks among the poorest countries on the continent. Economic instability, political turmoil, and reliance on agriculture contribute to its economic struggles. Moldova faces challenges such as corruption, inadequate infrastructure, and emigration of skilled labor. Additionally, the unresolved Transnistrian conflict hinders economic progress and foreign investment.

5. North Macedonia

Gross National Income Per Capita: $6,630

Poverty Rate: 19%

At Risk of Poverty: 21.8%

North Macedonia, a landlocked country in Southeast Europe, grapples with economic challenges stemming from political instability. Although the country has made strides in attracting foreign investment and improving infrastructure, high unemployment rates persist. Additionally, corruption and bureaucratic inefficiencies hinder economic growth and discourage investment.

6. Bosnia and Herzegovina

Gross National Income Per Capita: $7,575

Poverty Rate: 17%

At Risk of Poverty: 23.4%

Bosnia and Herzegovina, a country in the Balkans, continues to face economic challenges stemming from the aftermath of the Yugoslav Wars, political fragmentation, and ethnic tensions. Despite rich natural resources, including mineral deposits and arable land, the economy struggles due to a lack of investment, high unemployment rates, and a cumbersome bureaucracy. Corruption and a complex administrative structure further hinder economic development efforts.

7. Montenegro

Gross National Income Per Capita: $10,090

Poverty Rate: 19.2%

At Risk of Poverty: 20.3%

Montenegro, a small Balkan nation known for its stunning landscapes and Adriatic coastline, faces economic struggles despite its potential as a tourist destination. Economic dependency on tourism, coupled with a lack of economic diversification, leaves Montenegro vulnerable to external shocks. Issues such as corruption, inadequate infrastructure, and an inefficient public sector pose significant challenges to sustainable economic growth.

8. Bulgaria

Gross National Income Per Capita: $13,975

Poverty Rate: 21.9%

At Risk of Poverty: 30.2%

Bulgaria, situated in Southeast Europe, faces economic challenges despite its membership in the European Union. Issues such as corruption, organized crime, and weak rule of law impede economic development. High levels of unemployment, particularly among youth, and emigration of skilled labor exacerbate Bulgaria's economic struggles. Additionally, disparities in regional development and inadequate infrastructure hinder efforts to stimulate growth.

9. Belarus

Gross National Income Per Capita: $7,885

Poverty Rate: 4.7%

At Risk of Poverty: 23.9%

Belarus, a landlocked country in Eastern Europe, struggles with economic challenges stemming from authoritarian governance, state-controlled industries, and dependence on Russia. Despite possessing a relatively well-educated workforce and a developed industrial base, Belarus faces issues such as lack of economic diversification, limited access to international markets, and constraints on political freedoms. Additionally, the economy is vulnerable to external shocks and fluctuations in energy prices.

10. Serbia

Gross National Income Per Capita: $9,540

Poverty Rate: 8.5%

At Risk of Poverty: 21.2%

Serbia, a country located in the central and southeastern part of Europe, grapples with economic challenges arising from political instability, high unemployment rates, and a legacy of state intervention in the economy. While efforts have been made to attract foreign investment and implement structural reforms, issues such as corruption, bureaucracy, and an aging industrial base hinder Serbia's economic progress. Additionally, unresolved regional tensions and the status of Kosovo present ongoing challenges.

11. Romania

Gross National Income Per Capita: $15,820

Poverty Rate: 10.2%

At Risk of Poverty: 34.4%

Romania, another Eastern European country, grapples with economic difficulties despite its significant potential and natural resources. Corruption, inefficient public administration, and a lack of transparency hinder Romania's economic progress. Although efforts have been made to attract foreign investment and modernize infrastructure, challenges such as high levels of informal employment and emigration persist, particularly among skilled workers.

12. North Cyprus (Turkish Republic of Northern Cyprus)

Gross National Income Per Capita: $14,110

Poverty Rate: 15.3%

At Risk of Poverty: 17.8%

North Cyprus, a self-declared state recognized only by Turkey, faces economic challenges due to its political isolation and lack of international recognition. The economy heavily relies on financial aid from Turkey, tourism, and higher education services. However, issues such as limited access to international markets, lack of infrastructure development, and political uncertainty hinder economic growth and prosperity.

13. Greece

Gross National Income Per Capita: $20,870

Poverty Rate: 4.1%

At Risk of Poverty: 26.3%

Greece, located in Southern Europe, has faced profound economic challenges in recent years, exacerbated by the global financial crisis and austerity measures imposed by international creditors. High public debt, structural inefficiencies, and a large informal economy contribute to Greece's economic struggles. Despite bailout programs and reform efforts, the country continues to face issues such as high unemployment, brain drain, and sluggish economic growth.

14. Lithuania

Gross National Income Per Capita: $25,065

Poverty Rate: 3.9%

At Risk of Poverty: 24.2%

Lithuania, one of the Baltic states in Northern Europe, faces economic challenges despite its membership in the European Union. The country has made strides in economic reforms and attracting foreign investment, but issues such as emigration of skilled workers, demographic decline, and regional disparities persist. Additionally, corruption and bureaucratic inefficiencies hinder Lithuania's economic development efforts.

15. Latvia

Gross National Income Per Capita: $21,780

Poverty Rate: 2.5 % 

At Risk of Poverty: 25.6%

Latvia, a Baltic state in Northern Europe, confronts economic challenges stemming from the global financial crisis and its reliance on export-oriented industries. While Latvia has made strides in attracting foreign investment and improving its business environment, issues such as demographic decline, emigration, and a skills mismatch persist. Additionally, corruption and bureaucratic hurdles pose obstacles to sustainable economic development.

16. Spain

Gross National Income Per Capita: $29,675 

Poverty Rate: 3.4%

At Risk of Poverty: 27.5%

Despite being one of the first twelve member states of the European Union, Spain has been struggling with a weak economy, and rapidly rising at risk of poverty rates in recent years. Spain's economy suffers from relatively low productivity and th country has extremely high unemployment rates compared with other developed countries. While the per capita GDP is higher than in other poor European countries, Spain's economy is trending in the wrong direction, and the countries socialist government has done little to help. 

17. Poland

Gross National Income Per Capita: $18,690 

Poverty Rate: 6.5%

At Risk of Poverty: 15.9%

Poland, located in Central Europe, has experienced remarkable economic transformation since the end of communism. Despite significant progress, challenges such as income inequality, regional disparities, and an aging population persist. While Poland has attracted foreign investment and benefited from EU funds, issues such as corruption, judicial reforms, and environmental concerns remain areas of focus for sustainable development. 

18. Estonia

Gross National Income Per Capita: $28,250 

Poverty Rate: 3.5%

At Risk of Poverty: 21.2%

Estonia, another Baltic state, grapples with economic challenges despite its reputation as a digital leader in Europe. While Estonia has made significant progress in transitioning to a market economy and embracing digital innovation, issues such as income inequality, regional disparities, and a reliance on low-wage sectors remain. Moreover, demographic challenges, including emigration and an aging population, pose long-term economic concerns.

19. Croatia

Gross National Income Per Capita: $18,570

Poverty Rate: 2.4%

At Risk of Poverty: 20.7%

Croatia, known for its stunning coastline along the Adriatic Sea, faces economic challenges despite its potential as a tourist destination and agricultural producer. Structural issues such as high public debt, inefficient state-owned enterprises, and a slow pace of reforms hinder Croatia's economic growth. Additionally, regional disparities, corruption, and an aging population pose significant challenges to the country's economic prosperity.

20. Hungary

Gross National Income Per Capita: $18,400

Poverty Rate: 2.5%

At Risk of Poverty: 18.4%

Hungary, located in Central Europe, confronts economic challenges stemming from political instability, erosion of democratic institutions, and a concentration of power in the hands of the ruling party. While Hungary has attracted foreign investment and experienced periods of economic growth, issues such as corruption, cronyism, and restrictions on media freedom hinder sustainable development. Moreover, structural issues such as a skills gap and regional disparities persist.