In this article, we will look into the 24 least developed countries in Europe in 2024. If you want to skip our detailed analysis, you can go directly to 5 Least Developed Countries in Europe in 2024.
Europe's Economic Outlook
Europe is a rich continent, featuring some of the most advanced countries in the world in terms of human development and economic growth. However, the region exhibits considerable disparities within its borders. According to the IMF, Europe has a GDP per capita of $35,690, as of 2024, with the western part of the region boasting a GDP per capita of $51,450. On the other hand, in Eastern Europe, the economic development is not as significant, compared to the Western countries. As of 2024, Eastern Europe reports a GDP per capita of $15,670.
The Russia-Ukraine conflict remains the key driver of the economic downturn in Europe, rummaging trade and affecting economies through migration and remittances. According to an article by Reuters, published on September 22, 2023, the war in Ukraine has impacted European economic growth. The article cited a study by the Swiss National Bank, which states that the ongoing war significantly increased inflation across the continent. Since the tension escalated in February 2022, the region has witnessed an increase in energy prices, financial market disruption, and a considerable contraction in economies of the both countries. The report further analyzes the impact of the war on Britain, Germany, France, Italy, and Switzerland. The findings suggest that if the war hadn't begun, the economic output of the region would have increased by 0.1% and 0.7% in the last quarter of 2022, and the consumer prices would have been 0.2%-0.4% lower. Germany emerged as the most affected country due to the ongoing conflict. The country's GDP would have been 0.7% higher and inflation 0.2% lower in the fourth quarter of 2022. Apart from the immediate inflation, the report warns that the war could lead to long-term economic crises in the region.
European Market and Major Players
Although the current geopolitical tensions and regional disparities persist and present significant challenges, the European market continues to exhibit resilience. The diverse economies in the region foster a vibrant market, bursting with countless investment opportunities. Europe is home to some of the most valuable companies in the world. Some notable names in the market include AstraZeneca PLC (NASDAQ:AZN), Novo Nordisk A/S (NYSE:NVO), and SAP SE (NYSE:SAP).
AstraZeneca PLC (NASDAQ:AZN) is an Anglo-Swedish biotech company, headquartered in Cambridge, England. On December 26, 2023, the company announced that it had agreed to acquire Gracell Biotechnologies Inc. (NASDAQ:GRCL), a leading clinical-stage pharmaceutical company, specializing in innovative cell therapies for the treatment of cancer and autoimmune diseases. The acquisition proposed by AstraZeneca PLC (NASDAQ:AZN) will improve the growing pipeline of cell therapies, as a potential treatment for multiple myeloma and systemic lupus erythematosus (SLE).
Novo Nordisk A/S (NYSE:NVO) is the biggest pharmaceutical company in Europe. On January 4, the company announced that it had joined forces with Omega Therapeutics, Inc. (NASDAQ:OMGA), a clinical-stage biotechnology company. The research partnership will utilize Omega Therapeutics, Inc.'s (NASDAQ:OMGA) proprietary platform technology for the development of an epigenomic controller. The controller will support the treatment approach for obesity management, by enhancing metabolic activity. Novo Nordisk A/S (NYSE:NVO) has also collaborated with Cellarity Inc., a platform specializing in cellular dysfunction, to discover novel small molecule therapy in metabolic dysfunction-associated steatohepatitis (MASH). The company will be reimbursing the research and development costs to the involved companies. Each company will receive up to $532 million upfront and milestone payments with tiered royalties.
SAP SE (NYSE:SAP) is a leading multinational software company, providing business solutions to retailers. On January 11, the company announced the launch of new AI-assisted capabilities to support retailers in the optimization of their business processes, driving profitability and customer loyalty. These capabilities will support retailers adapt to rapid market changes, by providing integrated customer insights and analysis.
Talking about the new AI-driven capabilities, President and CEO Industries and CX, SAP SE (NYSE:SAP), Ritu Bhargava said:
“These AI-driven retail capabilities build on SAP’s industry-tailored, intelligent customer experience (CX) strategy, which provides companies with deeply integrated functionalities to enable their most critical business processes and customer journeys. SAP’s composable architecture unlocks the creative potential of retailers, allowing them to cherry-pick capabilities tailored to their unique needs and rapidly innovate and respond to market demands, ultimately helping them to supercharge profitable growth.”
With this context, let's have a look at the 24 least developed countries in Europe in 2024.
24 Least Developed Countries in Europe in 2024
24 Least Developed Countries in Europe in 2024
Methodology
To compile our list of the 24 least developed countries in Europe in 2024, we utilized HDI and GDP per Capita. We defined a country with lower HDI and GDP per capita as a least developed country. Firstly, we sorted the countries in Europe on the basis of HDI and sourced their GDP per capita. Then, we assigned ranks to the countries from lowest to highest, with 1 representing the least developed. Finally, we averaged the ranks for both our metrics and calculated the Insider Monkey rating. The countries on our list appear in descending order of the Insider Monkey rating of the countries.
Please note that we have not included countries with unavailable HDI or GDP per capita data in our list.
By the way, Insider Monkey is an investing website that tracks the movements of corporate insiders and hedge funds. By using a consensus approach, we identify the best stock picks of more than 900 hedge funds investing in US stocks. The top 10 consensus stock picks of hedge funds outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). Whether you are a beginner investor or a professional one looking for the best stocks to buy, you can benefit from the wisdom of hedge funds and corporate insiders.
24 Least Developed Countries in Europe in 2024
24. Italy
Human Development Index (2021): 0.895
GDP Per Capita (2024): $38,390
Insider Monkey Rating: 25.0
Italy is ranked 24th on our list. The country reported a HDI of 0.895 in 2021. According to the IMF, the country has a GDP per capita of $38,390.
23. Estonia
Human Development Index (2021): 0.890
GDP Per Capita (2024): $33,020
Insider Monkey Rating: 23.0
Estonia is ranked among the least developed countries in Europe in 2024. The country reported an HDI of 0.890 in 2021. According to the IMF, the country has a GDP per capita of $33,020.
22. San Marino
Human Development Index (2021): 0.853
GDP Per Capita (2024): $61,490
Insider Monkey Rating: 22.5
San Marino, the third smallest country in Europe, is ranked 22nd on our list. The country reports a GDP per capita of $61,490. In 2021, San Marino reported an HDI of 0.853.
21. Czechia
Human Development Index (2021): 0.889
GDP Per Capita (2024): $32,390
Insider Monkey Rating: 22.0
Czechia, also known as the Czech Republic, is ranked 21st on our list. The country reports a GDP per capita of $32,390, as of 2024. According to the UNDP, Czechia reported an HDI of 0.889 in 2021.
20. Andorra
Human Development Index (2021): 0.858
GDP Per Capita (2024): $45,640
Insider Monkey Rating: 21.5
One of the smallest countries in the world, Andorra, is ranked 20th on our list. The country reported a human development index of 0.858 in 2021. Andorra has a GDP per capita of $45,640, as of 2024.
19. Lithuania
Human Development Index (2021): 0.875
GDP Per Capita (2024): $31,120
Insider Monkey Rating: 20.0
Lithuania is ranked among the least developed countries in Europe in 2024. The country reported an HDI of 0.875 in 2021. According to the IMF, the country has a GDP per capita of $31,120.
18. Portugal
Human Development Index (2021): 0.866
GDP Per Capita (2024): $28,120
Insider Monkey Rating: 19.0
Ranked 18th on our list, Portugal reported an HDI of 0.866 in 2021. According to the IMF, the country has a GDP per capita of $28,120.
17. Greece
Human Development Index (2021): 0.887
GDP Per Capita (2024): $24,510
Insider Monkey Rating: 19.0
Greece ranks 17th on our list. In 2021, Greece reported an HDI of 0.887. According to the IMF, the country has a GDP per capita of $24,510.
16. Latvia
Human Development Index (2021): 0.863
GDP Per Capita (2024): $26,950
Insider Monkey Rating: 18.0
Ranked 16th on our list, Latvia is located in northeastern Europe. Latvia reports a GDP per capita of $26,950, as of 2024. In 2021, the country reported an HDI of 0.863.
15. Poland
Human Development Index (2021): 0.876
GDP Per Capita (2024): $23,430
Insider Monkey Rating: 18.0
Poland is one of the least developed countries in Europe in 2024. The country reported an HDI of 0.876 in 2021. According to the IMF, the country has a GDP per capita of $23,430.
14. Slovakia
Human Development Index (2021): 0.848
GDP Per Capita (2024): $26,710
Insider Monkey Rating: 15.5
Slovakia is ranked among the least developed countries in Europe in 2024. The country reported an HDI of 0.848 in 2021. According to the IMF, the country has a GDP per capita of $26,710.
13. Croatia
Human Development Index (2021): 0.858
GDP Per Capita (2024): $22,520
Insider Monkey Rating: 14.5
Ranked 13th on our list, Croatia reported an HDI of 0.858 in 2021. According to the IMF, the country has a GDP per capita of $22,520.
12. Hungary
Human Development Index (2021): 0.846
GDP Per Capita (2024): $23,010
Insider Monkey Rating: 13.5
Ranked 12th on our list, Hungary reports a GDP per capita of $23,010. In 2021, the country reported an HDI of 0.846.
11. Romania
Human Development Index (2021): 0.821
GDP Per Capita (2024): $20,210
Insider Monkey Rating: 10.5
Romania ranks 11th on our list, reporting a GDP per capita of $20,210 as of 2024. The country reported a human development index of 0.821 in 2021.
10. Russian Federation
Human Development Index (2021): 0.822
GDP Per Capita (2024): $13,320
Insider Monkey Rating: 10.0
Ranked 10th on our list, the Russian Federation reported an HDI of 0.822 in 2021. According to the IMF, the country has a GDP per capita of $13,320.
9. Montenegro
Human Development Index (2021): 0.832
GDP Per Capita (2024): $12,300
Insider Monkey Rating: 9.5
Montenegro is a country in Southeast Europe. It is ranked 9th on our list, reporting a GDP per capita of $12,300 as of 2024. According to the UNDP, the country reported an HDI of 0.832 in 2021.
8. Bulgaria
Human Development Index (2021): 0.795
GDP Per Capita (2024): $17,320
Insider Monkey Rating: 8.0
Ranked 8th on our list, Bulgaria reported an HDI of 0.795 in 2021. According to the IMF, the country has a GDP per capita of $17,320.
7. Serbia
Human Development Index (2021): 0.802
GDP Per Capita (2024): $12,360
Insider Monkey Rating: 8.0
Serbia ranks 7th on our list. The country reported an HDI of 0.802 in 2021. According to the IMF, the GDP per capita of the country is $12,360.
6. Albania
Human Development Index (2021): 0.796
GDP Per Capita (2024): $8,880
Insider Monkey Rating: 6.5
Albania is ranked among the least developed countries in Europe in 2024. The country reported an HDI of 0.796 in 2021. According to the IMF, the country has a GDP per capita of $8,880.
