Top-7 Poorest Countries in Europe by GDP PPP in 2025, Check the List

Europe is often known for its strong economies and high living standards, but not every nation on the continent enjoys the same level of prosperity. Some countries continue to face economic challenges due to historical, social, or political reasons. Their lower income levels and slower growth highlight the economic divide that still exists within Europe today.

Understanding GDP (PPP)

Before looking at the list, let’s understand what GDP (PPP) means:

• GDP (Gross Domestic Product) measures the total value of goods and services a country produces in a year.
• PPP (Purchasing Power Parity) adjusts this value by considering how much goods and services actually cost in each country.

This helps compare real living standards between nations more accurately than normal GDP.

A country with a low GDP (PPP) usually means its economy is smaller or people have less purchasing power compared to those in wealthier countries.

List of the 7 Poorest European Countries (2025)

According to IMF data (2025), the following countries have the lowest GDP (PPP) totals in Europe.
While some are small and stable, others struggle with poverty, unemployment, or lack of industrial development.

San Marino

San Marino, a tiny landlocked country surrounded by Italy, has one of Europe’s smallest total economies.
While its GDP per capita looks high, the country’s overall economic size is extremely small due to its limited population and industries.
San Marino depends heavily on banking, tourism, and small-scale manufacturing, making it vulnerable to global economic changes.

Andorra

Andorra, located between France and Spain, also relies mainly on tourism and duty-free trade.
Its small population and lack of natural resources limit large-scale economic development.
Although citizens enjoy good living standards, Andorra’s tiny economy keeps its overall GDP (PPP) among the lowest in Europe.

Montenegro

Montenegro is a Balkan nation known for its natural beauty and tourism.
However, its economy is small and faces high unemployment and heavy dependence on seasonal tourism.
Efforts to diversify industries are ongoing, but limited resources and external debt continue to affect growth.

Iceland

Iceland has a strong economy and high living standards, but because it’s a small island nation, its total GDP (PPP) remains low.
Its economy depends mainly on fishing, tourism, and renewable energy.
External shocks, such as global travel restrictions or fish stock changes, can impact it quickly.

Kosovo

Kosovo, one of Europe’s youngest countries, continues to face political challenges, low foreign investment, and high migration.
Many citizens work abroad and send remittances home, which helps support the local economy.
However, slow industrial development and unstable governance limit long-term progress.

Malta

Malta is a small island nation in the Mediterranean with a service-driven economy focused on tourism, finance, and shipping.
Although it has relatively high income levels per person, its total GDP (PPP) remains low because of its small population and limited space for industrial expansion.

Moldova

Moldova ranks as Europe’s poorest country by GDP per capita (PPP) in 2025, with just about $19,680 per person.
Its economy faces deep challenges such as low industrial output, mass emigration, and limited investment opportunities.
Many Moldovans move abroad for better jobs, and their remittances play a key role in supporting the national economy.

Why are these Economies So Small?

Several common reasons explain why these countries lag behind:

• Small populations and limited markets reduce industrial growth.
• Heavy reliance on tourism or agriculture makes them vulnerable to economic shocks.
• Political instability and migration slow long-term development.
• Geographic isolation and lack of natural resources restrict opportunities for diversification.

Which Country is the Poorest in Europe in 2025?

By GDP (PPP) size, San Marino ranks as the smallest economy in Europe in 2025.
However, if we look at GDP per capita (PPP) — the average income per person — Moldova remains the poorest, showing the lowest living standards among European countries.
Both nations highlight different sides of poverty — one due to its tiny economy, the other due to low individual income levels.