Countries with the Lowest Real GDP Growth Rates

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Countries Facing the Steepest Economic Slumps in 2025

Haiti: The World’s Most Economically Struggling Country
Haiti stands at the bottom of the economic spectrum with a sharp decline of -3.1% in its real GDP in 2025. Long plagued by political instability, natural disasters, and economic mismanagement, its latest figures reflect a nation grappling with severe hardships. Despite ongoing aid efforts, the country’s economy continues to shrink, impacting millions of Haitians struggling for stability and growth.
Myanmar’s Continued Economic Contraction
Myanmar’s economy has contracted by -2.7%, a reflection of ongoing political unrest following the military coup in 2021. The country’s export sectors, especially agriculture and manufacturing, have suffered setbacks, leading to decreased income and rising unemployment among its workforce. International sanctions and internal conflicts have further hindered economic recovery.
Equatorial Guinea’s Persistent Decline
With a decline of -1.6%, Equatorial Guinea’s economy remains fragile amid fluctuating oil prices and limited diversification. While the nation’s oil-driven economy had once boasted rapid growth, recent years have seen stagnation and contraction, affecting public services and infrastructure development.
Yemen’s Economic Woes Continue
Yemen faces a -1.5% contraction amidst ongoing civil conflict and humanitarian crises. Limited access to basic resources, disrupted trade routes, and ongoing warfare have decimated economic activities, plunging millions into poverty and deepening the humanitarian plight.
Botswana’s Slight Downward Shift
A marginal decline of -0.9% marks Botswana’s economic slowdown. The country’s reliance on diamond exports makes it vulnerable to global commodity price swings, which have dampened growth prospects despite stable governance.
Germany: Europe’s Largest Economy Inches Forward
Germany’s economy grew slightly by 0.2%, reflecting sluggish recovery from previous downturns. Challenges include labor market constraints, supply chain disruptions, and global economic uncertainties. Still, its robust manufacturing sector keeps it afloat amid sluggish growth.
Austria’s Modest Economic Growth
With 0.3% growth, Austria’s economy remains relatively stable but sluggish. International tourism, Austria’s economic backbone, faces headwinds from global travel restrictions, impacting service industries.
Italy and Finland Maintain Steady but Slow Growth
Both Italy and Finland, with 0.5% growth, exemplify European economies struggling to regain momentum. Italy faces structural issues, while Finland continues to capitalize on technological advancements despite economic headwinds.
Estonia and Venezuela Show Minimal Growth
Estonia’s 0.5% growth showcases resilience in its digital economy, yet Venezuela’s similar growth reflects ongoing economic upheavals caused by hyperinflation and political turmoil.
Iraq and Iran’s Stabilizing Economies
Both Middle Eastern nations maintain a 0.5-0.6% growth rate. Iraq’s post-conflict reconstruction continues, but oil dependency remains a vulnerability. Iran’s sanctions and political challenges hinder wider economic expansion.
Eastern European and Asian Economies: Slow but Steady
Hungary (0.6%), Russia (0.6%), Bolivia (0.6%), and South Korea (0.9%) exhibit cautious progress amid persistent geopolitical tensions and commodity market fluctuations.
Switzerland and New Zealand Keep Progressing
Switzerland and New Zealand stand out with 0.9% and 0.8% growth, respectively. Their stable political climates and diversified economies shield them from global shocks more effectively.
France and Sweden on the Cusp of Growth
Both countries exhibit a modest 0.7% expansion, reflecting ongoing recovery efforts post-pandemic, with emphasis on tech innovation and green energy investments.
Slovakia and South Korea: Slight Improvements
With 0.9% growth, Slovakia benefits from increased foreign investment, while South Korea’s focus on advanced technology sectors pushes economic growth forward.

Global Economic Outlook in 2025

The IMF’s World Economic Outlook reports an average global GDP growth rate of 3.2% for 2025, showcasing a mixed economic landscape. While some nations recover gradually, others face significant setbacks, emphasizing the uneven nature of global economic recovery amid ongoing geopolitical and environmental challenges. Countries with the lowest growth rates highlight the importance of stability, diversification, and effective governance in navigating economic hardships.

Source: IMF World Economic Outlook (October 2025) via Visual Capitalist