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Kosovo is the second poorest country in Europe


The WorldAtlas platform has published the 10 poorest countries in Europe. This site uses the International Monetary Fund database.

According to data for 2025, Kosovo is ranked as the second poorest country in Europe, after Moldova.

The measurement is made according to purchasing power parity.

According to the publication, the 2025 list reflects two major changes compared to previous rankings: Ukraine's economic decline following its full invasion by Russia in 2022, which has placed it among the three poorest countries, and Kosovo also ranks among the poorest on the continent.

However, even in this measurement, Ukraine ranks behind Kosovo.

Albania ranks seventh in terms of poverty in Europe, while Serbia ranks eighth.

The ranking below uses the International Monetary Fund's World Economic Outlook database (October 2025 publication, with estimates for 2025) and measures GDP per person according to purchasing power parity (PPP), expressed in dollars.

The 10 poorest countries in Europe: Moldova — about $19,700, Kosovo — about $20,400, Ukraine — about $21,000, Bosnia and Herzegovina — about $22,800, North Macedonia — about $24,300, Belarus — about $25,500, Albania — about $25,600, Serbia — about $28,500, Montenegro — about $31,000 and Bulgaria — about $36,000.

The description of Kosovo states that it has a small economy and is mainly oriented towards the service sector, where construction, trade and remittances make up the majority of economic activity.

Remittances from the Kosovar diaspora are mainly concentrated in Germany, Switzerland and Austria, reaching around 15% of GDP, one of the highest levels in the world, writes Koha.

Real economic growth has averaged around 4% over the last five years, but youth unemployment remains close to 30%, while a third of young people are neither in employment, education or training.

Kosovo's limited international recognition (around 100 UN member states recognize it; while Russia, China, India, Spain and Greece do not) limits access to international institutions and slows down foreign investment.

EU status: potential candidate (applied in December 2022).

As for Serbia, although it is described as the largest economy of the former Yugoslav republics on this list and with the most developed industrial base among them, one of the main obstacles mentioned is the normalization of relations with Kosovo.