During World Wars I and II, Europe’s economy was hurt badly. During the Cold War, many countries in central and eastern Europe gave in to pressure from Russia and formed COMECON (Council for Mutual Economic Assistance).
Most of the other countries that chose free-market policies got a lot of money from the U.S. Many western European countries came together to form the European Union to link their economies. This increased cross-border trade and helped their economies, while COMECON countries are still struggling.
Moldova
The GDP per person in Moldova, which is called the Republic of Moldova, is only $3,300. This makes it the poorest country in Europe. Romania and Ukraine are both next to Moldova.
The river Moldova is where the name Moldova comes from. After the fall of the Soviet Union in 1991, the economy of Moldova, which used to be part of the USSR, dropped quickly, and its people had to go through hard times financially.
Ukraine
The GDP per person in Ukraine is $3,425, making it the second poorest country in Europe. When the USSR broke up, Ukraine, which used to be part of the USSR, had the second-largest economy, but when the USSR broke up, it fell into a recession.
Over the past many years, there has been a constant war in Ukraine. As a result, more than 850,000 people have been forced to move within the country, and about 3 million Ukrainians are in desperate need of humanitarian aid.
On February 24, 2022, Russian President Vladimir Putin gave the order for a military operation in the east of Ukraine. More than 1.3 million people have left Ukraine because of the ongoing war between Russia and Ukraine. This is one of the largest migrations in such a short amount of time.
Kosovo
Kosovo, which is officially called the Republic of Kosovo, is a state that is only partially recognised and has a GDP per person of $5,020. Kosovo is the third poorest country in Europe, with one-third of its population living below the poverty line.
It means that 550,000 people live in poverty because they make less than 500 euros a month. As of 2020, Kosovo had a very high unemployment rate of more than 30%. This is expected to go down over the next few years since Kosovo is now a developing country that has seen economic growth in recent years.
Albania
The GDP per person in Albania, which is also called the Republic of Albania, is $5,373. After the USSR broke up in the 1990s, Albania began the transition from a socialist economy to a free-market economy.
Albania has a lot of natural resources, such as oil, natural gas, iron, coal, and limestone, which are helping the country’s economy get back on its feet. Albania, which covers an area of 28,748 km2 (11,100 sq mi), is now a developing country where the manufacturing and service industries are the most important.
North Macedonia
North Macedonia, which became independent in 1991, is the fifth poorest country in all of Europe. The economy of North Macedonia, which has a GDP per person of $6,096, is changing in a big way right now. More than 90% of the GDP of a country comes from trade.
Even though the government of North Macedonia has done well with reforms, there is a high unemployment rate of about 16.6%. At one point, North Macedonia had the highest rate of unemployment, which was 38.7%.
Bosnia And Herzegovina
With a GDP per person of $6,536, Bosnia and Herzegovina, also known as BiH or B&H, is the sixth poorest country in Europe. Bosnia’s history of war is the single biggest reason why people there are poor.
Before the Bosnian War broke out between Bosnia and Herzegovina in 1992 and lasted until 1995, Bosnia had a strong economy. It took the country 20 years to get back to normal.
Belarus
After the fall of the USSR, Belarus had a lot of economic problems, just like the other former Soviet republics. This made Belarus the seventh poorest country in Europe.
Before 1990, America had the highest standard of living and the best economy in the world. Belarus’s economy was in trouble until 1996, when it started to get better. Belarus has a per-person income of $6,604.
Montenegro
The economy of Montenegro, which is based mostly on energy industries, had a GDP per person of $8,704. Rapid urban growth, which leads to the loss of forests, is destroying the country’s natural resources and making it more vulnerable. Discrimination based on gender and age is common, which makes it hard for women to make as much money as men.
About 50,000 people in Montenegro are refugees, or people who have been forced to leave their homes. The rate of poverty in Montenegro is about six times higher than the average rate of 8.6% in the rest of the world.
Serbia
Serbia is one of the poorest countries in Europe. It ranks ninth with a GDP per person of $8,748. For eight years at the beginning of the 2000s, Serbia’s economy did well.
Because of the global financial crisis, Serbia’s economy grew less than it should have in 2009. This caused the country’s external debt to rise to 63.8 percent of its GDP. Serbia is prone to floods and earthquakes, which slow down the country’s economic growth.
Bulgaria
With a GDP per person of $11,350, Bulgaria is tenth on the list of the poorest countries in Europe. In the 1990s, when Bulgaria lost its main market in the Soviet Union, it tried to change to a free-market, democratic economy, which hurt its economy even more.
In 2008, the global financial crisis hit again, and this time it hit Bulgaria hard. IMF research shows that Bulgaria’s economy is at risk because more than 41% of its people are at risk of falling into poverty.
