20 Countries with Worst Performing Economies in 2025

Tuesday 8th of July 2025 08:51 AM

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The global economy is a complex and interconnected system, with various factors influencing the economic performance of individual nations. While some countries consistently demonstrate robust growth and stability, others grapple with a multitude of challenges, leading to significant economic contractions or stagnation. As we navigate through 2025, a combination of geopolitical tensions, persistent inflation, supply chain disruptions, and domestic policy issues are shaping the economic fortunes of countries worldwide. This article delves into the economic forecasts for the year, identifying and highlighting the twenty countries projected to have the worst-performing economies. 


Countries with Negative GDP Growth


1. South Sudan: -4.31% (plunging oil revenues and political turmoil)

2. Equatorial Guinea: -4.20% (structural economic challenges and reliance on fossil fuels)

3. Venezuela: -4.00% (economic crisis worsened by international sanctions)

4. Iraq: -1.50% (conflict, corruption, and weak governance)

5. Yemen: -1.50% (ongoing conflict and humanitarian crises)

6. Haiti: -1.00% (instability, corruption, and weak governance)

7. Puerto Rico: -0.80% (various economic challenges)

8. Sudan: -0.38% (conflict and economic instability)

9. Botswana: -0.36% (economic challenges)

10. Austria: -0.26% (high inflation and sluggish productivity)

11. Mexico: -0.26% (economic challenges)

12. Germany: -0.05% (stagnation and marginal growth)


Countries with Low GDP Growth


13. Iran: 0.31% (economic challenges and sanctions)

14. Italy: 0.44% (high inflation and sluggish productivity)

15. Japan: 0.55% (aging population and economic stagnation)

16. Moldova: 0.60% (economic challenges)

17. France: 0.64% (economic challenges)

18. Estonia: 0.74% (economic challenges)

19. Belgium: 0.84% (economic challenges)

20. Switzerland: 0.88% (economic challenges)


The list of countries projected to have the worst-performing economies in 2025 serves as a stark reminder of the fragile and often volatile nature of global economic health. From nations embroiled in conflict and political instability to those battling the adverse effects of climate change or struggling with structural economic weaknesses, the challenges are diverse and deeply entrenched. While the specific factors vary, common threads like reliance on single commodities, poor governance, and external shocks often exacerbate their economic woes. Understanding these struggling economies is not merely an academic exercise; it underscores the urgent need for international cooperation, targeted aid, and sustainable development strategies to alleviate human suffering and foster greater global stability. As the world moves forward, addressing the root causes of economic underperformance in these vulnerable nations will be crucial for building a more equitable and resilient global future.

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