The World’s Worst Performing Economies in 2025

The New Diplomat
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  • South Sudan is expected to be the worst performing economy this year as its oil exports stall, sparking hyperinflation and political instability
  • Several advanced economies made the list, including Austria, Germany, Italy, Japan, France, and Switzerland

Which countries are experiencing the sharpest economic contractions and lowest growth in 2025? According to the latest IMF projections, a mix of fragile developing nations and major advanced economies make the list.

From conflict-driven collapses to stagnation in Europe, this ranking reveals where economic headwinds are hitting hardest. Here’s a look at the world’s worst performing economies in 2025.

Data & Discussion

The data for this visualization comes from the International Monetary Fund (IMF). It ranks countries by their expected real GDP growth for 2025, spotlighting those projected to shrink the most.

Country Real GDP Growth in 2025 (%)
🇸🇸 South Sudan -4.31
🇬🇶 Equatorial Guinea -4.20
🇻🇪 Venezuela -4.00
🇮🇶 Iraq -1.50
🇾🇪 Yemen -1.50
🇭🇹 Haiti -1.00
🇵🇷 Puerto Rico -0.80
🇸🇩 Sudan -0.38
🇧🇼 Botswana -0.36
🇦🇹 Austria -0.26
🇲🇽 Mexico -0.26
🇩🇪 Germany -0.05
🇮🇷 Islamic Republic of Iran 0.31
🇮🇹 Italy 0.44
🇯🇵 Japan 0.55
🇲🇩 Moldova 0.60
🇫🇷 France 0.64
🇪🇪 Estonia 0.74
🇧🇪 Belgium 0.84
🇨🇭 Switzerland 0.88

Conflict-Ridden Economies Take the Hardest Hit

South Sudan tops the list with a growth rate of -4.31%, driven by plunging oil revenues and political turmoil.

Similarly, Equatorial Guinea and Venezuela show sharp declines amid structural economic challenges and reliance on fossil fuels. In 2022, Venezuela was the world’s 23rd largest oil producer despite U.S. sanctions.

Other conflict-affected or fragile states like IraqYemen, and Haiti are also experiencing negative growth due to instability and humanitarian crises.

Surprising Presence of Advanced Economies

Among the 20 worst performers are several advanced European economies. The IMF data shows Austria (-0.26%), Germany (-0.05%), and Italy (0.44%) are all projected to stagnate or grow marginally.

High inflation, sluggish productivity, and aging populations contribute to weak growth in these regions. Japan and Switzerland also make the list despite their developed status, signaling broader challenges in the Global North.

Credit: Visual Capitalist

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