Asia's Economic Outlook
The aftermath of the COVID-19 pandemic has impacted the Asia-Pacific region battling with disrupted economic growth. However, Asia is one of the few regions expected to perform better than the rest of the world. The Asian economy is facing a mix of both economic instability and economic growth. Two of the region's largest economies including China and India are going in opposite directions, with China suffering from a property market crisis and deflation while India making notable progress.
According to the IMF, growth in Asia was estimated to be around 4.7% in 2023, up 0.1% from the previous 4.6% projection in October 2023. China and India are the key economies for the upward revision. In China, increased spending on disaster reconstruction and resilience projects supported growth. In India, growth was supported by strong domestic demand. The IMF has upgraded Asia's growth forecast for 2024 from the previous projection of 4.2% in October 2023 to 4.5%. 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.
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. It would potentially impact regional exports, reducing demand for exports. 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. On average nearly 50 ships pass through the Red Sea each day, comprising $3 billion to $9 billion worth of cargo.
According to S&P Global Inc. (NYSE:SPGI), the Asia-Pacific region is expected to continue rapid economic expansion followed by resilient domestic demand in China, India, Indonesia, Malaysia, and the Philippines. In addition, strong foreign direct investment (FDI) inflows in India and other South Asian countries will positively impact the economic growth in the region. On January 17, Reuters reported that India has attracted FDI inflows worth $33 billion in the first six months of the current financial year that started in April 2023. India recorded an FDI of $71 billion in the 2022-23 financial year.
Most of the poorest countries in the world are based out of sub-Saharan Africa having the lowest GDP per capita. Along with African countries, some Asian countries also have the lowest GDP per capita in the world, including Afghanistan, Syria, and Sri Lanka.
Major Companies that are Driving Asia's Growth
JD.com Inc (NASDAQ:JD), Reliance Industries Limited (NSE: RELIANCE), and SM Investments Corporation (PSE:SM) are some of the leading companies that play an important role in their respective economies and across the Asia Pacific.
JD.com Inc (NASDAQ:JD) is one of the top e-commerce firms based out of China and one of the biggest competitors of Alibaba Group Holding Limited (NYSE:BABA). On March 6, JD.com Inc (NASDAQ:JD) reported its earnings for the fiscal fourth quarter of 2023. The company posted earnings per share of $0.74, beating consensus estimates by $0.11. The revenue for the quarter amounted to $42.52 billion, surpassing estimates by $914.80 million. Here are some of the comments from the company’s earnings call:
“In Q4, we delivered healthy top-line and bottom-line growth and made solid progress on operations, finishing off a productive 2023. In the past year, we stayed focused on constantly improving user experience, lowering costs, and increasing efficiency amidst evolving opportunities and challenges. Guided by our business philosophy, we carried out a set of proactive moves to drive more sustainable growth for the long term, mainly in the areas of user experience improvement, [indiscernible], and platform ecosystem strategy. Despite some short-term impact in 2023, our strategic focus has successfully steered key operating metrics in a positive direction.
2024 will be a year of execution. Our team will take firm and steady steps to execute our existing strategies and push forward our two priorities for the new year, namely user experience improvement and market share expansion.”
Reliance Industries Limited (NSE:RELIANCE) is India’s leading multinational giant. On February 28, Reliance Industries Limited (NSE:RELIANCE) announced that its subsidiary, Reliance Consumer Products Limited (RCPL), has partnered with Sri Lankan beverage company Elephant House. This new collaboration will allow Elephant House to manufacture, distribute, and sell beverages in India and help RCPL enhance its beverage portfolio.
SM Investments Corporation (PSE:SM) is a Filipino conglomerate that has a diversified portfolio in shopping mall development, retail, banking, real estate development, and tourism. On February 28, SM Investments Corporation (PSE:SM) reported that its consolidated revenues soared by 11% to PHP 616.3 billion in 2023 from PHP 553.0 billion in 2022. The net income was reported around PHP 77 billion in 2023, which grew 25% from PHP 61.7 billion in 2022. SM Investments Corporation (PSE:SM) sees potential for regional development and targeted high-growth sectors. Here is what the President and CEO of the company, Frederic C. DyBuncio, said:
“There is a lot of potential, especially in Luzon outside of the National Capital Region (NCR) as well as in Visayas and Mindanao where there is still a need to access modern trade. And it’s not just for our core businesses of retail, banking, and property but also for our portfolio companies.”
With this context, let’s take a look at the 25 poorest countries in Asia by GDP per capita.
25 Poorest Countries in Asia by GDP per Capita
Our Methodology
To compile our list of the poorest countries in Asia by GDP per capita, we have shortlisted the countries based on GDP per capita (current prices) from the International Monetary Fund (IMF) database. We have ranked the countries in descending order of their GDP per capita, as of 2024. The data for some countries was not available on the IMF, therefore, we sourced the GDP per capita for those countries from the World Bank database, which includes Afghanistan, Syria, and Sri Lanka. We have also highlighted the GDP (current prices) of the countries, wherever available, and the data is taken from the IMF database, as of 2024.
25 Poorest Countries in Asia by GDP per Capita
25. Iran
GDP Per Capita (2024): $20,694
On March 21, S&P Global Inc. (NYSE:SPGI) reported that the US sanctions on Iran have not worked as intended, as per the panelists from the webinar hosted by the Middle East Institute. Iran has a GDP of $386.22 billion and ranks 25th among the poorest countries in Asia by GDP per capita.
24. Turkmenistan
GDP Per Capita (2024): $20,551
Turkmenistan’s economy is expected to grow 6% in 2024, as per the Asian Development Bank. Turkmenistan has a GDP of around $90.9 billion, as of 2024.
23. Azerbaijan
GDP Per Capita (2024): $19,370
Azerbaijan is a Central Asian country with a GDP of around $80.98 billion. With a GDP per capita of $19,370, Azerbaijan ranks among the poorest countries in Asia by GDP per capita.
22. Indonesia
GDP Per Capita (2024): $16,843
Indonesia is one of the largest economies in Asia with a GDP of $1.54 trillion. Indonesia’s 20-year economic plan which was initiated in 2005 will come to an end in 2025.
21. Mongolia
GDP Per Capita (2024): $15,900
Mongolia has a GDP of around $19.55 billion. According to the IMF, Mongolia has a real GDP growth rate of 4.5%, as of 2024. Mongolia ranks 21st among the poorest countries in Asia by GDP per capita.
20. Vietnam
GDP Per Capita (2024): $15,318
Vietnam’s economy is in a 'pretty good position', according to Andy Ho, VinaCapital Group’s Chief Investment Officer. Vietnam has a GDP of around $469.67 billion.
19. Bhutan
GDP Per Capita (2024): $14,920
Bhutan is one of the poorest countries in Asia and has a GDP of around $2.86 billion.
18. Jordan
GDP Per Capita (2024): $13,442
Jordan has a real GDP growth rate of 2.7% in 2024, as per the IMF. Jordan has a GDP of around $52.66 billion and ranks among the poorest countries in Asia by GDP per capita.
17. Philippines
GDP Per Capita (2024): $12,127
The Philippines is one of the largest economies in Asia with one of the lowest GDP per capita in the world. The Philippines has a GDP of $475.95 billion.
16. Iraq
GDP Per Capita (2024): $12,048
Iraq has struggled with terrorism and war for decades now. Iraq has a GDP of $271.47 billion and ranks among the poorest countries in Asia by GDP per capita.
15. Uzbekistan
GDP Per Capita (2024): $10,909
In September 2023, Uzbekistan’s government adopted the National Development Strategy (NDS) until 2030. Through NDS, Uzbekistan aims to develop objectives and pivotal reforms across different sectors. Uzbekistan has a GDP of $99.58 billion, as of 2024.
14. Laos
GDP Per Capita (2024): $10,269
Laos is expected to have economic growth around 4% in 2024 compared to growth of 3.7% in 2023, according to the Asian Development Bank. Laos has a GDP of $14.1 billion and ranks among the poorest countries in Asia by GDP per capita.
13. India
GDP Per Capita (2024): $9,892
India is one of the largest economies in the world with a GDP of around $4.11 trillion, as of 2024. India had a population of around 1.41 billion in 2022, according to the data from the World Bank.
12. Bangladesh
GDP Per Capita (2024): $9,414
Bangladesh’s economy is improving and has a 6% real GDP growth rate in 2024, as per the IMF. Bangladesh has a GDP of around $455.16 billion.
11. Pakistan
GDP Per Capita (2024): $6,961
Pakistan is suffering from political and economic instability and relies a lot on IMF loans. With a GDP per capita of $6,961, Pakistan ranks among the poorest countries in Asia by GDP per capita.
10. Kyrgyzstan
GDP Per Capita (2024): $6,724
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.
9. Cambodia
GDP Per Capita (2024): $6,540
Cambodia has a GDP of around $33.23 billion in 2024. With a GDP per capita of $6,540, Cambodia is one of the poorest countries in Asia.
8. Tajikistan
GDP Per Capita (2024): $5,658
Tajikistan has a real GDP growth rate of around 5% in 2024, as per the IMF. Tajikistan has a GDP of $12.92 billion and a GDP per capita of $5,658.
7. Myanmar
GDP Per Capita (2024): $5,349
Myanmar averaged a 6% growth rate from 2011 to 2019, according to the World Bank. Myanmar has a GDP of around $79.27 billion, as of 2024.
6. Nepal
GDP Per Capita (2024): $5,226
Nepal has a GDP of $45.46 billion and a GDP per capita of $5,226. Nepal ranks sixth among the poorest countries in Asia by GDP per capita.
5. Timor-Leste
GDP Per Capita (2024): $3,706
Timor-Leste has a GDP of $2.04 billion and a GDP per capita of $3,706. Timor-Leste ranks fifth among the poorest countries in Asia by GDP per capita.
4. Sri Lanka
GDP Per Capita (2022): $3,354
Sri Lanka’s economy has been suffering. However, on March 22, Reuters reported that the economic conditions in debt-stricken Sri Lanka have gradually begun to improve, as per the IMF. Sri Lanka is one of the poorest countries in Asia by GDP per capita.
3. Yemen
GDP Per Capita (2024): $2,095
Yemen has a GDP of $21.89 billion and is one of the poorest countries in the world. According to the World Bank, Yemen experienced a whopping 52% contraction in real GDP per capita from 2015 to 2022, leaving the majority of the population in crisis.
2. Syria
GDP Per Capita (2021): $421
Syria had a GDP per capita of $421 in 2021. The country has suffered a lot from war and continues to face more threats. Syria ranks second among the poorest countries in Asia by GDP per capita.
1. Afghanistan
GDP Per Capita (2021): $356
Afghanistan is the poorest country in the world and has suffered from war for decades. In 2021, Afghanistan had a GDP per capita of $356 in 2021.
