The list of the 8 worst economies in 2025, led by Syria, Sudan and Yemen

A list prepared by Brand Vision, which specializes in monitoring brands, showed that Syria tops the list of the eight worst economies in the world, followed by Sudan and Yemen, in addition to Venezuela, Lebanon, Haiti, Afghanistan, and Argentina, respectively, which means that the Arab countries classified among the poorest in the world constitute 50% of this list.

In a constantly shifting global landscape, the countries with the worst economies in 2025 illustrate the devastating impact of conflict, mismanagement or financial crises. Some are war-torn nations whose GDP has collapsed due to violence and sanctions, while other middle-income countries are trapped in recurring cycles of inflation and policy failure.

Despite vast differences in geography and context, each case underscores the human consequences of severe economic decline: growing poverty, mass migration, hyperinflation, and the disintegration of social structures.

The list, released Thursday, ranks the countries with the worst economies in 2025, examining key indicators that determine their decline, from negative GDP growth and rising inflation to chronic unemployment and political instability.

Supported by data from the International Monetary Fund, the World Bank and other reliable sources, the report highlights recent economic developments and the root causes of their conflicts.

While some countries face unique conflict-related obstacles, others share common traps such as currency collapse or unsustainable debt burdens.

1- Syria

The report says Syria is at the forefront of countries with the worst economies due to fourteen years of devastating civil war that broke out in 2011. The conflict has destroyed infrastructure, forced millions to leave their homes, and brought production to a near standstill.

The country's GDP has shrunk by about 64% since the war began, and any glimmer of economic activity remains informal or linked to the war economy.

As 2025 begins, reports point to recurring negative growth rates, with real GDP contracting by about 3.5% in 2022 and an additional 3.2% in 2023, leaving per capita income at historically low levels.

These devastating trends reflect the complete disintegration of Syria’s once vibrant local market, with shopping malls reduced to rubble and a battered regime struggling to restore even a modicum of normalcy.

Sanctions, a collapsing currency and hyperinflation of basic commodities are all fueling Syria’s slide into one of the world’s worst economies. Over the past two years, the Syrian pound has lost about two-thirds of its value, leading to inflation estimated at around 40% officially but likely to be higher in daily transactions.

Meanwhile, half the population remains food insecure, with basic commodities from bread to medicine barely affordable.

Unemployment statistics are unreliable, although local estimates put the rate at very high levels. There is little hope for comprehensive reconstruction without a clear political solution.

2- Sudan

In Sudan, the country’s slide into chaos has pushed it among the worst economies in 2025. After decades of turbulent transitions, renewed fighting between rival military factions in April 2023 has shattered any hope of stability.

The World Bank and the African Development Bank paint a bleak picture for the country, with the economy shrinking by an unprecedented 37.5% in 2023 alone, as infrastructure, agricultural production and small businesses fall victim to the conflict.

Such a sharp decline erases signs of earlier modest recovery and pushes per capita income to catastrophic lows. In the absence of functioning governance structures in conflict zones, GDP is likely to contract further in 2024, leaving Sudan’s battered economy less than half the size it was a few years ago.

One of the worst indicators is the rise in hyperinflation, which reached about 146% in 2023, driven by the government’s reliance on printing money to cover its ballooning deficit. Sanctions and capital flight are amplifying the currency collapse, with the Sudanese pound continuing to deteriorate.

Poverty rates have also risen, with more than half the population now dependent on humanitarian aid, and entire communities facing famine-like conditions. Religion remains a mysterious subject.

Until the warring parties agree to a lasting peace and real reconstruction efforts begin, the country’s prospects remain alarmingly bleak, illustrating how the conflict could quickly turn the crisis into one of the most severe economic collapses in modern times.

3 - Yemen

Since 2015, the civil war has devastated nearly every sector in Yemen, leading to recurring recessions and a more than 50% drop in per capita GDP. A ceasefire in 2022 provided a brief respite, but the blockade and ongoing tensions keep the formal economy in tatters. Oil exports, once the mainstay of revenue, have plummeted.

Even modest growth prospects are being wiped out by destroyed infrastructure and fractured governance. By 2025, real GDP will remain well below pre-war levels, creating a massive humanitarian catastrophe, with millions on the brink of famine.

Inflation in Yemen stems from a currency collapse and supply chain disruptions. While official inflation figures hover in the double digits, the lived experience is harsher, especially for food and fuel.

With the Houthi authorities controlling the northern central bank and the internationally recognized government taking over the management of the southern currency apparatus, the Yemeni riyal is suffering from a continuous decline in its value.

The majority of the population is also suffering from widespread unemployment, with around 80% living below the poverty line. Combined with dim prospects for reconstruction and minimal foreign direct investment, Yemen’s ongoing conflict environment is set to rank among the worst economies in 2025, with little hope of relief unless a comprehensive peace agreement and aid flows.

4- Venezuela

Venezuela is a complex case of severe economic collapse caused by mismanagement, sanctions, and over-reliance on oil exports. Over the past decade, GDP has contracted by a staggering 70%, one of the largest peacetime contractions ever observed.

Hyperinflation, which peaked at 130,000% in 2018, has shattered consumers’ purchasing power, leading to the mass displacement of millions of people in search of basic living conditions elsewhere.

In 2023 and 2024, inflation continued to rise at very high levels, ranging between 190% and 230%. Although overall hyperinflation has declined slightly, the Venezuelan bolivar remains severely undervalued.

Amidst the turmoil, unemployment and poverty rates have soared. While the country registered a small positive growth in 2023 due to a slight increase in oil production, this improvement barely registers compared to the massive economic collapse.

Public debt remains a major concern as the country defaults, with Venezuela lacking access to international lending channels since 2017. Political deadlock, exacerbated by international sanctions targeting Nicolás Maduro’s regime, continues to stifle any comprehensive reform. Even if oil prices rise, structural weaknesses make a real recovery elusive.

5 - Lebanon

The dramatic financial collapse since late 2019 has pushed Lebanon into the ranks of the world’s worst economies. Once known for its vibrant services and tourism sectors, Lebanon is now suffering an unprecedented collapse in GDP, losing more than 50% of its economic output in less than five years, to the point that the World Bank has ranked Lebanon’s crisis among the three most severe economic collapses in the world since the 19th century. People’s bank deposits remain restricted and have lost much of their value due to the collapse of the Lebanese pound.

One of the main symptoms of the Lebanese economy’s collapse is the currency crisis. The Lebanese pound had been pegged to the US dollar at an average exchange rate of 1,507.5 liras for decades, but by 2023, the dollar had risen to more than 90,000 liras on parallel markets, sending inflation into triple digits.

Lebanese citizens, who have lost confidence in the banking system, have resorted to dealing in dollars to survive. As a result, poverty rates have risen from about 14% before the crisis to about 44%, with more than half the population earning wages that are not enough to cover even basic goods.

Indeed, the deadly combination of political paralysis that preceded the election of President Joseph Aoun and the formation of a new government headed by Nawaf Salam, in addition to rampant corruption, has always been a deterrent to any rescue or reform plan.

6 - Haiti

Haiti is in a vicious cycle of political chaos and economic collapse. Despite a history of natural disasters and structural fragility, the recent surge in gang violence and the collapse of governance have accelerated the downward spiral.

The economy has contracted for six consecutive years through 2024, with real GDP estimates showing a rate of -1.9% in 2023 and -4.2% in 2024, while entire commercial areas in Port-au-Prince are virtually paralyzed by armed groups, bringing any trade or normal activity to a halt.

The crisis is exacerbated by widespread poverty and food insecurity. More than half the population needs urgent assistance, and the near-total collapse in formal employment is fueling mass migration. Inflation soared to over 49% in 2023, before falling slightly as demand ebbed, reflecting that many households lack the money for anything beyond basic necessities.

Government capacity is also minimal, with tax revenues negligible and foreign aid doing most of the heavy lifting, even as growing security risks hamper relief distribution. Haiti’s inability to hold elections or maintain a functioning parliament underscores the political vacuum that is fueling the crisis, all amid persistent negative growth, extreme poverty, and institutional weakness through 2025.

7 - Afghanistan

Afghanistan’s fragile transition following the Taliban takeover in August 2021 has pushed the country into the ranks of the world’s worst economies. Foreign aid, which previously accounted for 40% of GDP, quickly disappeared, causing GDP to contract by 20% to 30% between 2021 and 2022.

By 2023, the country’s economy has stabilized slightly, recording a recovery of about 2.7%, but GDP remains limited. The lack of access to central bank reserves, along with sanctions and restrictions on women’s employment, has further stifled productivity.

Although hyperinflation has been avoided since demand collapsed and money supply remains limited, Afghanistan’s crisis remains entrenched, with more than 90% of households living in poverty and nearly half the population dependent on humanitarian aid to survive. Skilled professionals continue to flee the country, straining the capacity to run basic health or education services.

Politically, the Taliban’s authoritarian rule and international isolation deter large-scale foreign support or investment, perpetuating a subsistence economy. Even modest improvements in agriculture are insufficient to offset the massive decline in services and industry.

8 - Argentina

Argentina is plagued by chronic mismanagement, high inflation and debt distress. Over the past decade, recurring crises have undermined what was once a thriving middle-income economy in Latin America.

Between 2023 and 2024, inflation rose to 211%, the highest level since the early 1990s, as the Argentine peso lost much of its value in parallel exchange markets.

Real GDP is projected to fall by 2-3% in 2023 and 3.5% in 2024, due to a severe drought that has hit agricultural exports and a wave of monetary instability. More than half of Argentines now live below the poverty line, a stark sign of the collapse in purchasing power.

Behind these difficulties lies Argentina’s repeated failure to rein in its deficit and limit currency issuance, leading to a cycle of currency devaluation. Political volatility, amplified by a polarizing 2023 election, is exacerbating the crisis. Some forecasts suggest a strong recovery is possible if radical reforms, such as full dollarization, take hold.

However, Argentina’s track record of incompletely implemented measures and sudden policy reversals limits the positive outlook. Until inflation is contained decisively and structural reforms are implemented, Argentina will remain one of the worst-performing economies in 2025, suffering from recurrent currency shocks, rising poverty, and the constant threat of default on its debt.

Source: Al-Araby Al-Jadeed