Poverty in Asia and the Pacific: 12 Things to Know Asian Development Bank

Kyrgyzstan is expected to have an improvement in its growth rate from an estimated 3.8% in 2023 to 4% in 2024, as per the Asian Development Bank. Kyrgyzstan has a GDP of $13.66 billion and ranks 10th among the poorest countries in Asia by GDP per capita. Jordan has a GDP of around $52.66 billion and ranks among the poorest countries in Asia by GDP per capita. According to the IMF, Mongolia has a real GDP growth rate of 4.5%, as of 2024.

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1. China and India have the world’s largest populations, with 1.44 billion and 1.39 billion people, respectively.
2. Along with African countries, some Asian countries also have the lowest GDP per capita in the world, including Afghanistan, Syria, and Sri Lanka.
3. Syria rarely shares official economic data, so economists must rely on their best estimates—which paint a bleak picture.
4. North Korea may actually be the poorest country in Asia, but the nation’s notoriously secretive government rarely shares its data, so economists must rely upon expert estimates.
5. However, years of ongoing conflicts make it hard to determine precise economic figures for assessment.
6. The country also spends the largest part of its national budget on defense, allocating only 2.6% of its total GDP to education.

As of 2020, it is estimated that some 60% of North Korea’s population lives below the poverty line. Afghanistan is a country that has had a turbulent political period in the past, especially while it was under the Taliban regime between September 1996 and December 2001. The Taliban period was extremely detrimental to the economy to the extent where the per capita income in 2001 was only $200. However, following the end of the detrimental regime, the economy has been improving to what it is now. The major natural resources driving the economy include gold, fruits, opium, nuts, and others. In addition, the country has vast mineral deposits (worth at least $1 trillion), which have not been exploited.

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The easternmost country in continental Africa mostly relied on an informal economy based on livestock, remittances from Somalis living abroad, and telecommunications. Based on gross domestic product, in 2021, Somalia was the third-poorest country in the world (after Burundi and South Sudan). In international assessments of its business climate, Somalia regularly lands in one of the last places.

Afghanistan

To this day, Afghanistan continues to be a territory mostly hostage to violence and instability, suffering from a poorest country in asia very severe economic crisis, with a large part of the population living in extreme poverty. However, years of ongoing conflicts make it hard to determine precise economic figures for assessment. Since its independence from France in 1960, it has gone through many political crises and military coups.

Afghanistan borders Iran to the west and Pakistan to the south, Turkmenistan, Uzbekistan and Tajikistan to the north, and China in its eastern part. Covering an area of about 652,000 square kilometers and with a population of 40 million, it is one of the poorest countries in the world and the poorest in Asia. That’s because the cost of living and inflation rates can vary a lot from one country to another. PPP stands for Purchasing Power Parity and considers the local costs and inflation rates to give a more accurate picture of the standard of living in different countries. Its economy is hampered by physical isolation, limited resources, outdated infrastructure, and inadequate institutions.

Despite commendable strides in recent years, uneven development and political challenges continue to hinder necessary economic growth. Leading the unfortunate list is Afghanistan, which has a GNI per capita of only $500. The harsh economic climate in Afghanistan is a testament to the enduring conflicts and political instability that the country has been grappling with for many years. Despite recent economic achievements, the country continues to struggle with poverty, and the government has done little to build the necessary infrastructure required to lift millions of its people out of impoverishment. This mountainous nation is burdened by ongoing armed conflict, government corruption, and prolific income inequality.

President Evariste Ndayishimiye has made an effort to relaunch the economy and repair diplomatic relationships, and in 2022 both the US and the European Union resumed aid after lifting financial sanctions. Unfortunately, while growth is picking up, inflation is projected this year to be around 22%. Burundi, a small landlocked country in East Africa, confronts significant socio-economic challenges, including political instability, conflicts, and inadequate infrastructure development. The nation’s economic struggles and the hardships faced by its citizens are further exacerbated by rapid population growth.

In emerging and developing Asia, the growth is expected to decline from 5.4% in 2023 to 5.2% in 2024 and 4.8% in 2025. The growth in the Middle East and Central Asia is forecasted to increase from 2% in 2023 to 2.9% in 2024 and 4.2% in 2025. At the moment, few countries in the world have diplomatic relations with the current ruling regime, which has not yet been recognized by many countries since its takeover.

The world has enough wealth and resources to ensure that the entire human race enjoys a decent standard of living. Yet, people in countries like Burundi, South Sudan and the Central African Republic continue to live in desperate poverty. Niger, a landlocked West African country, faces economic challenges and high poverty rates due to limited natural resources, frequent droughts, and a predominantly agricultural economy. With 80 percent of its territory blanketed by the Sahara Desert and a growing population reliant on small-scale agriculture, desertification poses a significant threat. South Sudan, the world’s youngest country, gained independence in 2011 but faces significant economic challenges.

1. Spanning over 17.2 million square miles (44.58 square kilometers), Asia comprises about 30% of Earth’s total land area and 8.7% of Earth’s total surface area.
2. Afghanistan Afghanistan is Asia’s poorest country, with a GNI(PPP) of $1,690.
3. India is one of the largest economies in the world with a GDP of around $4.11 trillion, as of 2024.
4. A rudimentary legal system, low-but-improving adult literacy rate, and a particularly poor telecommunications infrastructure are often cited as additional impediments to economic growth.
5. South Asia is the world’s fastest-growing region, and is even faster than China.
6. With a majority relying on traditional agriculture, violence and extreme climate events often disrupt farming, perpetuating poverty in this landlocked nation of about 11 million people.

Two main sources of data used in this article – International Monetary Fund and the World Bank – provide comprehensive yet not exhaustive or definitive data on Asian countries. Thus, reports on some countries, such as North Korea and Turkmenistan, must rely on expert estimates. Enjoy a year of ad-free browsing, exclusive access to our in-depth report on the revolutionary AI company, and the upcoming issues of our Premium Readership Newsletter over the next 12 months. Those who saw the potential of tech giants back then are sitting pretty today. From driverless cars to medical breakthroughs, AI is on the cusp of a global explosion, and savvy investors stand to reap the rewards.

Top 10 poorest countries in the world by GDP per capita

Relatively good political stability and the current constitution were formed in 2014. Although the country is rich in political resources, internal instability, external interferences, and limited harnessing of these resources exist. Mining and tourism are the two big factors that contribute to the GDP of the country. Even though Cambodia has experienced rapid economic growth in the recent past, poverty and inequitable wealth distribution remain significant concerns. Below is a ranking of the ten poorest countries, starting from the country ranked tenth poorest and progressing to the country ranked as the top poorest in the world for 2024. For the complete ranking of the world’s countries from poorest to richest, click here.

Although the IMF has upgraded the growth estimates, China’s property sector could further cut domestic demand, especially if the stress level rises in local government finances. In addition, China has had an inflation rate of around 0.3% in 2023 with the economy heading towards deflation. Other potential risks such as tighter-than-expected conditions in Asia and the US could impact heavily indebted industries and economies. Geopolitical tensions in the Middle East can impact global trade as Yemeni Houthis are continuously attacking the ships of Israel and its allies. As we mentioned in our article about the 20 countries with the highest tariffs, the traffic through the Red Sea has declined by over 40% since the attacks from Houthis, disrupting global supply chains.

In recent years, Syria has also experienced very high levels of inflation which reached its highest level of 121.29% in 2014. I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries. Bangladesh’s economy is improving and has a 6% real GDP growth rate in 2024, as per the IMF. Indonesia is one of the largest economies in Asia with a GDP of $1.54 trillion.