The Poorest Countries in Europe

Europe contains both some of the wealthiest economies on Earth and a string of countries with GDP per capita that would be classed as middle-income or lower middle-income by World Bank standards. The rankings below use the International Monetary Fund's World Economic Outlook database (October 2025 release, with 2025 estimates) and measure GDP per capita on a purchasing power parity basis, expressed in international dollars. PPP adjusts for differences in cost of living between countries and is the standard comparator for living-standard analysis. The 2025 list reflects two major shifts from earlier editions of this ranking: Ukraine's collapse in measured output following Russia's 2022 full-scale invasion has pushed it deep into the bottom three, and Kosovo (which the IMF tracks separately from Serbia) sits among the poorest on the continent. Bulgaria and Greece have both grown out of the bottom ten since the early 2020s. Russia and the South Caucasus republics are treated as transcontinental and noted separately at the end.

The 10 Poorest Countries In Europe (IMF WEO 2025)

1. Moldova - about $19,700
2. Kosovo - about $20,400
3. Ukraine - about $21,000
4. Bosnia and Herzegovina - about $22,800
5. Albania - about $25,600
6. North Macedonia - about $24,300
7. Belarus - about $25,500
8. Serbia - about $28,500
9. Montenegro - about $31,000
10. Bulgaria - about $36,000

_{*All figures are GDP per capita on a purchasing power parity (PPP) basis, expressed in international dollars (IMF World Economic Outlook, October 2025 release).}

1. Moldova

• Population (2024): about 2.4 million
• GDP per capita (2025)*: about $19,700
• EU status: candidate (granted June 2022, accession negotiations opened June 2024)

Moldova remains the poorest country in Europe by GDP per capita on a PPP basis. The economy is heavily agricultural, with wine production accounting for a significant share of exports, and is exceptionally exposed to remittance flows that fund roughly 12-15% of household consumption. Roughly a quarter of the working-age population lives abroad, mostly in Romania, Italy, Russia, and Israel. The country has been on a slow but visible reform path since 2021 under President Maia Sandu, with EU candidate status granted in June 2022 and full accession negotiations opening in June 2024. The breakaway region of Transnistria, supported by Russia, continues to complicate fiscal accounting and energy supply. Inflation peaked at over 34% in late 2022 after Russian gas cuts but has since fallen back into single digits.

2. Kosovo

• Population (2024): about 1.6 million
• GDP per capita (2025)*: about $20,400
• EU status: potential candidate (applied December 2022)

Kosovo declared independence from Serbia in 2008 and remains the youngest country in Europe. Its economy is small and services-driven, with construction, retail, and remittances making up the bulk of measured activity. Remittances from the Kosovar diaspora (concentrated in Germany, Switzerland, and Austria) regularly amount to about 15% of GDP, one of the highest ratios in the world. Real GDP growth has averaged roughly 4% over the past five years, but youth unemployment runs near 30% and a third of young Kosovars are neither in employment nor in education or training. Kosovo's limited international recognition (about 100 UN member states recognise it; Russia, China, India, Spain, and Greece are among those that do not) constrains access to international institutions and slows foreign investment.

3. Ukraine

• Population (2024, IMF estimate excluding territories under Russian occupation): about 33-35 million
• GDP per capita (2025)*: about $21,000
• EU status: candidate (granted June 2022, accession negotiations opened June 2024)

Ukraine's ranking reflects the economic destruction of Russia's full-scale invasion that began in February 2022. Ukrainian GDP fell about 28% in 2022 alone, the sharpest single-year contraction of any European economy since the early 1990s. The recovery since then has been modest (about 5% growth in 2023 and an estimated 3% in 2024) but constrained by ongoing destruction of energy infrastructure, the displacement of about 14 million people internally or abroad, and the loss of access to ports and industrial regions in the east and south. Reconstruction cost estimates from the World Bank, European Commission, UN, and Ukrainian government totalled roughly $524 billion as of early 2025 and have risen since. Ukraine was granted EU candidate status in June 2022 and opened accession negotiations in June 2024 alongside Moldova.

4. Bosnia and Herzegovina

• Population (2024): about 3.2 million
• GDP per capita (2025)*: about $22,800
• EU status: candidate (granted December 2022, negotiations opened March 2024)

Bosnia and Herzegovina has been constrained for three decades by the political structure established under the 1995 Dayton Agreement, which created two semi-autonomous entities (the Federation of Bosnia and Herzegovina and Republika Srpska) and a complex tripartite presidency that makes routine economic reform very difficult. About 19% of the population lives below the national poverty line, and surveys suggest a further 50% are vulnerable to falling into poverty. The country is heavily dependent on remittances, which account for roughly 11-12% of GDP. EU candidate status was granted in December 2022, and accession negotiations formally opened in March 2024, though political deadlock between the entities continues to slow reform.

5. Albania

• Population (2024): about 2.7 million
• GDP per capita (2025)*: about $25,600
• EU status: candidate (granted June 2014, accession negotiations opened July 2022)

Albania has been one of the better-performing economies on this list over the past few years, with average annual GDP growth around 4% during 2022-2025 driven largely by a tourism boom. The country received roughly 11.7 million international visitors in 2024 (more than four times its population), with Italian and German arrivals leading the increase. Despite the tourism boost, structural challenges remain serious: a rapidly aging population, large-scale emigration of working-age citizens, persistent informal sector activity, and weak rule of law all weigh on productivity. Albania opened EU accession negotiations in July 2022, with EU officials repeatedly citing it as one of the more advanced candidates for membership before 2030.

6. North Macedonia

• Population (2024): about 1.8 million
• GDP per capita (2025)*: about $24,300
• EU status: candidate (granted December 2005, negotiations opened July 2022)

North Macedonia renamed itself from "Macedonia" in 2019 under the Prespa Agreement with Greece, which lifted the long-standing Greek veto on the country's NATO membership and EU progression. NATO membership followed in 2020 and EU accession negotiations formally opened in July 2022. Economic growth has been steady but modest, averaging about 2% in recent years. Unemployment has fallen sharply, dropping below 13% in 2024 after running above 30% in the early 2010s (still one of the higher rates in Europe). The economy is anchored in metals, textiles, automotive components for European supply chains, and increasingly tourism in the Ohrid lake region and Skopje area.

7. Belarus

• Population (2024): about 9.1 million
• GDP per capita (2025)*: about $25,500
• EU status: none; relations frozen since 2020

Belarus has been economically isolated from the EU and wider Western markets since the 2020 election crisis and subsequent crackdown on protests. The country's role in supporting Russia's 2022 invasion of Ukraine triggered further sanctions, particularly on potash exports (Belarus is the world's third-largest potash producer) and refined petroleum. Trade has reoriented sharply toward Russia, which now accounts for about 60% of Belarusian exports. The IT sector, once one of the strongest in the post-Soviet space and a major source of growth, has lost an estimated 15,000-20,000 skilled workers to emigration since 2020. The economy posted nominal growth in 2024 (largely a recovery from earlier sanctions impact) but real wages and consumer purchasing power remain below 2019 levels.

8. Serbia

• Population (2024): about 6.6 million
• GDP per capita (2025)*: about $28,500
• EU status: candidate (granted March 2012, negotiations opened January 2014)

Serbia is the largest of the former Yugoslav economies on this list and has the most developed industrial base among them. Manufacturing for European supply chains (particularly automotive components and white goods), pharmaceuticals, agricultural exports, and a growing IT services sector anchor the economy. Foreign direct investment from Chinese, Russian, German, and Italian firms has been substantial, though Serbia's refusal to align fully with EU sanctions against Russia following the 2022 invasion has complicated its accession path. EU candidate status was granted in March 2012, but negotiations have stalled at the level of individual chapter openings since 2021, with the normalisation of Kosovo relations remaining the main outstanding issue.

9. Montenegro

• Population (2024): about 620,000
• GDP per capita (2025)*: about $31,000
• EU status: candidate (granted December 2010, negotiations opened June 2012)

Montenegro is the most advanced EU candidate of the Western Balkans group, with most negotiating chapters provisionally closed and a stated target of membership by 2028 under the European Commission's accession roadmap. The Montenegrin economy is heavily tourism-dependent (tourism accounts for about 25% of GDP), making it sharply exposed to seasonal demand and external shocks. The country uses the euro unilaterally despite never having joined the eurozone, which limits its monetary policy options. Public debt remains high (around 65% of GDP) and the country's small size limits domestic market potential.

10. Bulgaria

• Population (2024): about 6.8 million
• GDP per capita (2025)*: about $36,000
• EU status: member since 2007; eurozone entry scheduled for January 2026

Bulgaria is the only EU member in the bottom ten and remains the lowest-income member of the bloc by GDP per capita. About 22% of the population lives below the national poverty line, the highest share in the EU. Bulgaria has moved up significantly from earlier editions of this ranking as its economy has grown faster than the EU average since the 2010s. It has been formally approved for eurozone membership, with the official currency change scheduled for 1 January 2026 when the lev will be retired in favour of the euro. The country's economy is centred on manufacturing (particularly for German automotive supply chains), IT services, and tourism, with the Black Sea coast and ski resorts at Bansko and Borovets drawing several million visitors a year.

Transcontinental Countries For Comparison

Several transcontinental countries that span the Europe-Asia boundary are sometimes counted as European depending on the criterion used. Their 2025 IMF figures for context: Armenia (about $25,800), Azerbaijan (about $25,900), Georgia (about $26,500), Russia (about $43,800), Kazakhstan (about $42,000), and Turkey (about $46,800). If counted as European, Armenia and Azerbaijan would slot in around positions 5-7. Russia and Kazakhstan would sit between Bulgaria and Romania in the broader European table. Turkey would slot in just below Romania.

Why The Ranking Looks The Way It Does

Three patterns explain most of the ordering. First, the post-Yugoslav and post-Soviet transition: countries that began the 1990s with state-planned economies and have made the slowest progress on rule of law and institutional reform sit lowest, regardless of natural resource endowment. Second, conflict and instability: Ukraine's sudden drop reflects the direct cost of the Russian invasion, while Bosnia's stagnation traces back to the 1995 Dayton settlement that froze its political dysfunction in place. Third, EU integration: every country that has joined the EU since 2004 has converged toward the bloc average, often dramatically. Poland, Romania, and the Baltic states sat on this list a generation ago and have since climbed into mid-range European income territory, and Bulgaria's continued presence in the bottom ten is increasingly a function of how much faster other new EU members have grown rather than absolute Bulgarian decline. The Western Balkans candidates (Albania, North Macedonia, Montenegro, Serbia, Bosnia, Kosovo) sit at roughly 40% of the EU average GDP per capita and would, on OECD growth projections at current rates, not reach the EU average until approximately 2074.