Sadly, some countries in the world are having a bit of a tough time financially. Sometimes, it’s because of government mismanagement, and other times, it’s through no fault of their own. Either way, here are 25 countries that are on the edge of complete financial disaster.
Venezuela
In Venezuela, the price of ordinary things like bread can double from the morning to the evening. Why? It’s because hyperinflation is out of control, meaning that prices skyrocket daily and sometimes within hours. This mess is thanks to a deadly mix of political changes and that the country has relied too much on oil reserves in the past.
Lebanon
Lebanon’s money troubles have hit the country pretty hard, meaning that people’s bank accounts are suddenly plummeting in value. It’s all because of dodgy moves by the government and poor financial management, which have pushed the country’s banks to the brink. Prices are soaring and the local currency is pretty much useless, with no hope in sight.
Argentina
Argentina is, once again, struggling to pay its debts, and it’s almost become like a tradition. Right now, they’re dealing with sky-high inflation and a shrinking economy, and these are making paying off debts even more challenging. The government has tried a few times to restructure the debt to make things better, but it doesn’t seem to be working.
Zimbabwe
Once upon a time, Zimbabwe was a hot travel spot, but things went south fast when land reforms didn’t work out like they were meant to. The economy is in freefall with hyperinflation that once made their currency pretty much worthless. To fix these issues, the government is trying to stabilize the economy by introducing a new one, but people are still struggling.
Greece
Not too long ago, Greece was struggling to manage its debt, thanks to some serious spending in the past. Things are a little better now, but people are still feeling the pinch with fewer jobs and fewer public services around. Recovery is happening way too slowly for anyone to really feel it.
Sri Lanka
Sri Lanka’s been in hot water for a while as the country’s trying to juggle a mountain of debt. It’s causing major problems for them because they’re running out of essentials like food and fuel. The government is making an effort to create debt belief, but political instability and economic mismanagement have meant that the solutions are difficult to achieve.
Italy
Like many other countries, Italy is suffering from huge debt and lots of political changes that never seem to stop. This slowness means it’s difficult for the country to kick into higher gear and shake off these economic cobwebs. Things are particularly challenging for young people because there aren’t many job opportunities or prospects for growth.
Ukraine
To nobody’s surprise, the ongoing conflict in Ukraine has caused huge damage to its infrastructure and resources. After all, you can’t exactly rebuild when there’s a war going on, and this has caused huge financial issues. Even beyond the immediate cost of the conflict, there’s a lack of long-term investment.
Ecuador
In Ecuador, the oil market has caused some of the nation’s major issues. When oil prices fall, the country’s budget does the same, forcing the government to make cuts in public spending. Depending on such a fragile market means there’s very little room for error or space for global economic shifts, which is seriously affecting the country’s economy.
Turkey
In Turkey, they use the lira as their currency, and this is causing some major economic problems. Since its value keeps changing, everything has become more expensive, and people’s purchasing power has fallen. If that wasn’t bad enough, political issues have caused issues for both businesses and customers.
South Africa
Finding a job is difficult for most South Africans, leading to very high unemployment rates. This has caused the wealth gap between the rich and poor to widen even further, causing even more issues for the economy. It’s a vicious cycle because a bad economy means fewer jobs, which causes the economy to become even worse.
Pakistan
To keep its economy afloat, Pakistan has had to rely on loans from other countries. This means the country is unable to create a stable economic path on its own terms as the government has to weigh each decision it makes against the potential impact on foreign aid. The loans help in the short term, but they come with some long-term problems.
Jamaica
A big part of Jamaica’s economy relies on the tourism industry, and this affects other industries like construction and manufacturing. So, whenever there’s a decline in global travel, you can bet that Jamaica’s feeling the pinch. The ups and downs of tourism are causing major problems for the country’s growth and financial stability.
Belarus
The biggest problem in Belarus comes from the economic sanctions other countries have put on it. Why? Because the Belarusian government has shown support for Russia during their war with Ukraine. These sanctions mean fewer trade deals and less cash flowing in, which is forcing them to rely on a tighter circle of international friends.
Nigeria
Like some of the other countries on this list, Nigeria’s economy depends heavily on oil prices, and the recent changes in the market have caused some issues for this African nation. The government has tried to spread its wealth in other areas, but it’s happening far too slowly. And with the global push for greener energy, it doesn’t look like the future will be great either.
Iran
International sanctions have hit Iran pretty hard, and it’s the oil industry that’s suffering the most. Being locked out of so many global markets causes issues for people in their daily lives, which makes it harder for the economy to grow. Iranians are trying to make do with what they have, and they have a tough future ahead of them.
Egypt
Egypt is also suffering from a lot of debt, which means it is not able to make any economic progress. This debt prevents the government from spending on things like better roads or new schools, which is making hard times even harder. Hopefully, they’ll be able to grow their economy soon.
Spain
In Spain, a lot of young people are having trouble finding jobs. The job scene is not looking great, and it’s not just temporary since the country’s had one of the highest youth employment rates for a while. If things don’t turn around soon, this could mean big trouble for Spain’s economic future.
Mongolia
Mongolia relies quite a lot on its mining sector to keep the economy going, but that’s causing some huge problems. Whenever the global prices for minerals like coal and copper start falling, it’s Mongolia’s economy that’s feeling the effects of it. Planning has become a real headache.
Laos
The Laos government has been betting on some major infrastructure projects in the hopes that they’d pay off big time. Unfortunately, not all of them have been winners, which has left the country with a huge amount of debt. The nation is now in a financial tight spot, and it’s struggling to dig itself out.
Cyprus
Cyprus’s banking crisis caused some huge problems in the past, and the country’s economy still has not recovered. Getting back up has been a slow and shaky process, mostly because people don’t trust the financial system anymore. This means that any economic recovery is happening very slowly.
Portugal
Similarly, Portugal’s economy is ticking on very slowly, and it’s mostly because of its slow growth and heavy debts. One report shows that growth in 2023 dropped to 2.3%, compared to 6.8% in 2022. People are struggling to see when or how things might rev up again, and it doesn’t look like there’s any chance of a quick turnaround.
Honduras
In Honduras, the wealth gap is pretty distinct, which is creating instability in the market. This is making people feel unhappier, and it’s making the chances of a stable economic foundation look slim. The struggle is real to set things right and give everyone an equal chance because of the inequalities in the system.
North Korea
North Korea has isolated itself from global economics, which means it’s not able to get any of the benefits like advanced technology and strong trade deals. The country is locked in a state of economic decline without any chances of growth or innovation. As a result, the country is falling behind compared to the rest of the world.
Haiti
Political and environmental issues in Haiti have completely destroyed the nation’s economy. There’s no consistency in the government, which means there’s no economic progress either. People are constantly on edge, and this makes it even harder to plan for things in the long term. Even international investors are avoiding the country because of the risks.
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