More than 731 million people living in 48 different countries are
part of the economy of Europe. Though the wealth of the European nations
vary widely, even the poorest countries of Europe are well above the
poorest countries of Africa, Asia, and South America. The poorest
countries of Europe are usually those that were severely affected by the
downfall of the Soviet Union. While most of the countries of Europe are
very well-developed and have GDP per capita higher than the world
average, a few nations still need to perform exceedingly well to catch
up with these European leaders. Here, we present some of the poorest
countries in Europe and the status of their economies.
10. Bulgaria -
Bulgaria is a country located in southeastern Europe. The nation
shares its land borders with Romania, Serbia, Macedonia, Greece, and
Turkey. The Black Sea lies to the east of the country. Bulgaria’s
economy experienced a major setback in the 1990’s after the loss of the
Comecon and Soviet market. The attempts to establish a democratic
government and a free market economy in the country further destabilized
the economy of Bulgaria. The standard of living in the country reduced
by 40% and began recovering only after 1998. By June 2004, the economy
of Bulgaria had regained pre-in1989 levels. However, the Great Recession
of 2008 struck the economy badly, and a 5.5% economic decline was
experienced in 2009. Since then, however, the country has recovered
better than most Balkan countries but still the growth of the economy of
Bulgaria continues to be weak.
9. Montenegro -
Montenegro is a Southeastern European nation sharing its borders with
Croatia, Bosnia and Herzegovina, Kosovo, Serbia, and Albania. It also
has a coast on the Adriatic Sea. Montenegro’s GDP per capita was only
41% of the average of the European Union in 2010 according to Eurostat.
The impact of the Yugoslav Wars and the decline of industry following
the break-up of Yugoslavia accompanied with the loss of UN financial
sanctions adversely affected the economy of Montenegro. In 2009, the
nominal GDP of the country was $4.114 billion USD. The economy of
Montenegro was in a steady state of growth until the global recession of
2008 that struck the country badly. The situation led to the
contraction of the GDP of the country by 4%. However, things have
improved in the past few years and the economy of Montenegro is
gradually recovering.
8. Belarus -
Belarus is an Eastern European landlocked nation that is bordered by
Poland, Ukraine, Lithuania, and Latvia. More than 40% of the land area
of Belarus is covered by forests. Industries and manufacturing are the
strongest economic sectors of the country. Belarus ranks 8th among the
poorest countries in Europe. Like many other former Soviet republics,
Belarus faced an economic crisis after the fall of the Soviet Union and
the government of independent Belarus then adopted a way to overcome the
crisis. Formerly, Belarus had a well-developed economy and one of the
highest standards of living among the Soviet republics. However, between
1991 and 1995, a profound economic crisis gripped the entire country.
Decrease in import, investment, and demand led to a drop in the
industrial production in the country. It was not till 1996 that the GDP
of the country began to recover.
7. Serbia -
Serbia is located at an intermediate position between Southeast and
Central Europe. The landlocked nation shares its borders with Romania,
Hungary, Macedonia, Bulgaria, Montenegro, Croatia, and
Bosnia-Herzegovina. The economy of Serbia has been severely affected by
the global economic crisis of 2008. After experiencing eight years of
strong economic growth, the country’s economy entered a period of
recession in 2009. Negative growth rates of −3% in 2009 and −1.5% in
2012 resulted as a result of this economic crisis and Serbia’s public
debt doubled in 4 years from 29.2% of GDP before the crisis to 63.8% of
GDP after it.
6. Republic of Macedonia -
Macedonia, a country in Southeast Europe is one of the poorest
countries in Europe. The country earned its independence in 1991 as one
of the successor states of the former Yugoslavia. Macedonia is a
landlocked nation that is bordered by Serbia, Bulgaria, Greece, and
Albania. Since independence, the country has undergone dramatic economic
reform. The country has gradually improved its economy over the years
with successful policies implemented by the government. Macedonia has an
open economy where trade accounts for 90% of the GDP in recent years.
However, in spite of the reforms, the country has a high unemployment
rate of 27.3% as of 2015 and a high poverty rate. 72% of the people of
the country have reported that they manage their living standards with
difficulty.
5. Bosnia and Herzegovina -
Bosnia and Herzegovina in Southeastern Europe is located in the
Balkan Peninsula. The country is bordered by Serbia, Croatia, and
Montenegro. It also shares a coastline with the Adriatic Sea. Bosnia
faces the dual challenge of rebuilding the war-torn country and
recovering the economy, one of the poorest in Europe. Though the country
was once prosperous, the political unrest in the 1990’s led to a
dramatic change in the economy of Bosnia. The GDP of the country fell by
60% during this time, and the destruction of the country’s physical
infrastructure devastated its economy. Though the economy of Bosnia and
Herzegovina has gradually recovered, a large trade deficit and a high
unemployment rate of 38.7% are causes of concern.
4. Albania -
Albania is a Southeast European nation that is bordered by Kosovo,
the Republic of Macedonia, Greece, and Montenegro. It also has a
coastline on the Ionian Sea and the Adriatic Sea. Though Albania is one
of the poorest countries in Europe, the economy of the country is
constantly improving. Since the early 1990s, the country’s economy has
undergone a major shift from a Communist principle based one to an
open-market economy. The country’s rich natural resources have promoted
the rapid economic development.
3. Kosovo -
Kosovo ranks third among the poorest countries in Europe. The country
is a landlocked region located in the central Balkan Peninsula. It is a
disputed territory and a partially recognized state. Kosovo has a
transition economy and was former Yugoslavia’s poorest province. During
the 1990’s, a number of poor economic reforms, the abolition of
autonomous institutions, reduced access to external trade and finance
severely damaged the already weak economy of Kosovo. After the 2008
declaration of independence, the economy of Kosovo exhibited a gradual
improvement but still the disputed status of the region act as a barrier
to quick economic growth. However, a strong banking system and low
levels of economic debt and liabilities are the strengths of the economy
of Kosovo.
2. Ukraine -
Ukraine is an Eastern European sovereign state that is currently in
territorial dispute with Russia. In 2014, Russia annexed the Crimean
Peninsula which Ukraine and the greatest section of the international
community recognize to be part of Ukrainian territory. Though the
Ukrainian economy was the second largest in the Soviet Union, after the
dissolution of the union, independent Ukraine made a major transition
from a planned economy to a market economy which plunged a major section
of the country into poverty. The economy of Ukraine contracted
severely, and people in the country struggled to live. Ukrainians in
rural areas grew their own food and worked in more than one job to earn
an income that would ensure survival. Inflation gripped the country and
in 1993, Ukraine became the world record holder for inflation in 1
calendar year. By 1999, the GDP of Ukraine fell to less than 40% of what
it was in 1991. The suffering economy once again was hit by the
economic crisis of 2008. Since then, the economy has been improving but
even in 2014, the GDP of Ukraine was yet to reach the historical
maximum. Corruption, bureaucratic red-tape, underdeveloped
infrastructure and transportation are some of the problems prevalent in
the country. Despite these issues, Ukraine has managed to reduce
absolute poverty and its poverty rate has decreased from 11.9% in 2000
to 2.3% in 2012.
1. Moldova -
Moldova is an Eastern European landlocked nation that is bordered by
Ukraine and Romania. ChiČinÄu is the capital city of the country.
Moldova is the poorest country in Europe. The country suffered a major
economic setback after the breakup of the USSR. In a climate of
political uncertainty and weak administrative capacity, the Moldovan
economy faced energy shortages and trade obstacles. The major objective
of the newly formed Moldovian government was thus to stabilize the
economy and recover the financial status of the country. The government
introduced convertible currency, liberalized interest rates and prices,
backed steady land privatization, removed controls on exports, and
backed the privatization of lands to achieve this aim. With new policies
implemented, the economy of Moldova has exhibited a steady growth and
recovery.
Poorest Countries In Europe----On Fow24news.com
Reviewed by FOW 24 News
on
August 16, 2017
Rating: 5 More than 731 million people living in 48 different countries are part of the economy of Europe.
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