The world’s most — and least — miserable economies in 2025, ranked

The idea of a misery index was fathered by Arthur Okun, a distinguished economist and Yale professor who served as chairman of the President’s Council of Economic Advisers from 1968 to 1969 during President Lyndon B. Johnson’s administration. Johnson wanted an easy way to take the economy’s temperature. Okun’s index, which he used for the United States, is equal to the sum of the inflation and unemployment rates.

Okun’s misery index was modified by Harvard professor Robert Barro in 1999, by including the 30-year government-bond yield and the difference between the long-term-trend rate of real GDP growth and the actual rate of real GDP growth.

In 2009, I amended Barro’s version of the misery index by replacing the 30-year government-bond yield with lending rates, and by replacing the difference between the long-term-trend rate of real GDP growth and the actual rate of real GDP growth with the growth rate of real GDP per capita.

Then, in 2022, I made a further amendment to HAMI. Following Andrew Oswald’s (University of Warwick) suggestion, I decided to double the weight put on the unemployment-rate component in HAMI. The intuition is that an additional percentage point of unemployment hits people a lot harder than an additional percentage point of inflation. So, HAMI is the sum of the year-end unemployment (multiplied by two), inflation, and bank-lending rates, minus the annual percentage change in real GDP per capita.

Some might protest that the inflation rate and bank lending rate are correlated, and therefore HAMI double-counts the effects of inflation. Similar to the doubling of the unemployment weight, this is by design. The logic for this is rooted in loss aversion: People perceive losses as more significant than gains. Therefore, two items that contain inflation are included while the growth rate in real GDP per capita, a gain, is not double weighted.

Unlike Okun and Barro, who focused on the United States, HAMI covers many foreign countries; 178 are included in the 2025 edition — a new record.

Rank (Worst to Best)	Country	Misery Index	Major Contributing Factor
1	Venezuela	556.4916	Inflation
2	Sudan	225.3674	Inflation
3	Turkey	100.9610	Lending rate
4	Iran	95.8785	Inflation
5	Argentina	88.3548	Inflation
6	Eswatini	80.0417	Unemployment
7	South Africa	79.0287	Unemployment
8	Malawi	75.1526	Inflation
9	Madagascar	73.9617	Lending rate
10	Lebanon	72.4354	Unemployment
11	Haiti	72.3550	Inflation
12	Angola	72.3312	Lending rate
13	Yemen	70.9509	Lending rate
14	Myanmar	65.8942	Inflation
15	Zimbabwe	64.7210	Lending rate
16	Djibouti	60.6007	Unemployment
17	Botswana	60.0948	Unemployment
18	Bosnia and Hercegovina	59.6779	Unemployment
19	Brazil	59.6366	Lending rate
20	Gabon	58.5675	Unemployment
21	Ukraine	55.5641	Lending rate
22	Palestinian Territories	52.4679	Inflation
23	Namibia	50.8055	Unemployment
24	Congo (brazzaville)	49.7878	Unemployment
25	Lesotho	48.5402	Unemployment
26	Egypt	46.4752	Unemployment
27	São Tomé and Príncipe	45.7870	Lending rate
28	Bolivia	44.0357	Inflation
29	Tunisia	43.8642	Unemployment
30	Suriname	43.5723	Lending rate
31	Iraq	41.9677	Unemployment
32	Jordan	41.2703	Unemployment
33	Syria	41.1575	Unemployment
34	Georgia	40.0072	Lending rate
35	St. Vincent and the Grenadines	39.1071	Unemployment
36	Rwanda	38.9303	Lending rate
37	Nigeria	37.8900	Inflation
38	Mauritania	37.8311	Lending rate
39	Kazakhstan	37.8157	Lending rate
40	Cuba	37.4372	Inflation
41	Mozambique	37.3164	Lending rate
42	Congo (Democratic Republic)	36.8888	Lending rate
43	Uzbekistan	36.5478	Lending rate
44	Libya	36.0237	Unemployment
45	Pakistan	35.7077	Lending rate
46	Colombia	35.5889	Lending rate
47	Tajikistan	35.5166	Lending rate
48	The Gambia	34.1847	Inflation
49	Honduras	34.0335	Lending rate
50	Ghana	32.9663	Lending rate
51	Equatorial Guinea	32.8624	Unemployment
52	Armenia	32.8246	Lending rate
53	Zambia	31.7050	Inflation
54	Burundi	31.0339	Inflation
55	Mongolia	30.6199	Lending rate
56	Nepal	30.3327	Unemployment
57	Guinea	30.1743	Lending rate
58	Azerbaijan	30.0473	Lending rate
59	Russia	29.2889	Lending rate
60	Romania	29.2253	Lending rate
61	Central African Republic	29.0967	Lending rate
62	Sierra Leone	29.0507	Lending rate
63	Dominican Republic	28.4691	Lending rate
64	Ethiopia	28.4599	Inflation
65	Kenya	28.1463	Lending rate
66	Cabo Verde	27.3768	Unemployment
67	North Macedonia	27.3600	Unemployment
68	Montenegro	27.0721	Unemployment
69	Kyrgyz Republic	26.8306	Lending rate
70	Algeria	26.7545	Unemployment
71	Uruguay	26.4952	Lending rate
72	St. Lucia	26.3988	Unemployment
73	Estonia	25.6007	Lending rate
74	Paraguay	25.4389	Lending rate
75	Turkmenistan	25.1167	Lending rate
76	Spain	25.0209	Unemployment
77	New Zealand	24.2175	Lending rate
78	Chile	24.0089	Unemployment
79	Serbia	23.9988	Unemployment
80	Bangladesh	23.5174	Inflation
81	Peru	23.2992	Lending rate
82	Iceland	23.1386	Lending rate
83	Uganda	23.1103	Lending rate
84	Jamaica	23.0654	Lending rate
85	Sweden	23.0602	Unemployment
86	India	22.8678	Lending rate
87	Finland	22.8516	Unemployment
88	Greece	22.0346	Unemployment
89	Bahamas	21.9260	Unemployment
90	Mauritius	21.7778	Lending rate
91	Austria	21.2547	Unemployment
92	Morocco	20.9561	Unemployment
93	Belarus	20.9546	Lending rate
94	Chad	20.8856	Lending rate
95	Albania	20.7536	Unemployment
96	Liberia	20.6153	Lending rate
97	Guyana	20.2438	Unemployment
98	Canada	20.1265	Lending rate
99	Latvia	20.0960	Unemployment
100	Vanuatu	20.0738	Unemployment
101	Barbados	20.0567	Lending rate
102	Moldova	20.0445	Lending rate
103	United Kingdom	19.5658	Lending rate
104	Australia	19.3127	Lending rate
105	Hungary	19.2113	Lending rate
106	Grenada	19.1454	Unemployment
107	Tanzania	19.0507	Lending rate
108	Panama	18.5593	Lending rate
109	Saudi Arabia	18.4771	Unemployment
110	Trinidad and Tobago	18.4258	Lending rate
111	Norway	18.2306	Lending rate
112	Lithuania	18.1663	Unemployment
113	Mexico	18.0361	Lending rate
114	Luxembourg	17.8248	Unemployment
115	France	17.7502	Unemployment
116	Brunei Darussalam	17.2724	Lending rate
117	Portugal	17.2235	Unemployment
118	Bhutan	17.1581	Lending rate
119	United States of America	16.9914	Lending rate
120	Cameroon	16.9646	Lending rate
121	Comoros	16.9339	Lending rate
122	Slovakia	16.8836	Unemployment
123	Indonesia	16.8365	Lending rate
124	Belgium	16.7817	Unemployment
125	Poland	16.6983	Lending rate
126	Guatemala	16.5731	Lending rate
127	Italy	16.5080	Unemployment
128	Maldives	16.0715	Lending rate
129	Laos	15.7370	Lending rate
130	Bulgaria	15.6794	Unemployment
131	Philippines	15.4527	Lending rate
132	Samoa	15.3930	Lending rate
133	Papua New Guinea	15.2268	Lending rate
134	Sri Lanka	15.0788	Lending rate
135	Costa Rica	15.0245	Lending rate
136	Oman	14.9899	Lending rate
137	Cyprus	14.9736	Lending rate
138	El Salvador	14.7963	Lending rate
139	Aruba	14.6604	Lending rate
140	Nicaragua	14.4940	Lending rate
141	Ecuador	14.3882	Lending rate
142	Slovenia	13.0329	Unemployment
143	Solomon Islands	12.7097	Lending rate
144	Israel	12.5367	Lending rate
145	Netherlands	12.3493	Lending rate
146	Belize	12.3056	Lending rate
147	Germany	12.2414	Unemployment
148	United Arab Emirates	12.0468	Lending rate
149	Kuwait	11.8885	Lending rate
150	Croatia	11.8879	Unemployment
151	Seychelles	11.7562	Lending rate
152	Fiji	11.7446	Unemployment
153	Mali	11.6533	Lending rate
154	Tonga	11.3273	Inflation
155	South Korea	11.0247	Lending rate
156	Vietnam	10.7388	Lending rate
157	Niger	10.1974	Inflation
158	Hong Kong	10.0374	Lending rate
159	Denmark	10.0239	Lending rate
160	Bahrain	9.7109	Lending rate
161	Malta	9.4606	Unemployment
162	Togo	9.3834	Lending rate
163	Cambodia	8.7539	Lending rate
164	China	8.7389	Unemployment
165	Senegal	8.7090	Lending rate
166	Czech Republic	8.5105	Lending rate
167	Malaysia	8.4561	Lending rate
168	Switzerland	7.7732	Lending rate
169	Guinea-Bissau	7.3984	Lending rate
170	Burkina Faso	7.3807	Lending rate
171	Qatar	7.2405	Lending rate
172	Japan	7.2005	Inflation
173	Macau	6.6637	Lending rate
174	Côte D’ivoire	6.2886	Lending rate
175	Ireland	5.3470	Lending rate
176	Thailand	3.1417	Lending rate
177	Singapore	2.5939	Lending rate
178	Taiwan	2.1159	Unemployment

Sources: Economist Intelligence Unit (including estimates), International Monetary Fund World Economic Outlook, World Bank, International Labor Organization, and individual Central Banks and Statistical Institutes of each country.

Note: The Misery Index is the sum of the unemployment rate multiplied by 2, the end-period consumer prices rate, and the lending rate, minus the growth in Real GDP Per Capita. The median of the 2025 Annual Misery Index is 21.85. The mean of the 2025 Annual Misery Index is 31.64.

Calculations by Professor Steve H. Hanke, The Johns Hopkins University

The Rankings in Context

The 20 countries that are most miserable in 2025 are, once again, a familiar rogue’s gallery. Of the 20 most miserable countries in 2024, 17 remain in 2025’s top 20. Syria — which occupied a dismal third place in 2024 — has made the most dramatic exit, plunging all the way to 33rd following the fall of the Assad regime. Egypt and São Tomé and Príncipe have also departed. In their place, Botswana, Bosnia and Herzegovina, and Brazil have entered, reflecting persistently high unemployment and elevated borrowing costs. At the happy end of the HAMI distribution, Taiwan retains the title of the world’s happiest economy for the second consecutive year, and Ireland — powered by extraordinary GDP growth — has climbed an impressive 54 positions to become the fourth-happiest economy on earth.

The ten most miserable countries in the world in 2025, listed by descending rank order, were Venezuela, Sudan, Turkey, Iran, Argentina, Eswatini, South Africa, Malawi, Madagascar, and Lebanon. I highlight the first three.

Venezuela: A Catastrophe Without Precedent

Venezuela seizes this year’s top position as the world’s most miserable country, with a HAMI score of 556.5 — the highest recorded in the 2025 edition and a devastating increase from its sixth-place ranking in 2024. The story is one of an accelerating collapse. The Maduro regime, having stolen the July 2024 presidential election and suppressed the democratic opposition by force, triggered a new wave of international sanctions that choked off oil revenues and sent the bolívar into free fall. The Banco Central de Venezuela’s own belated disclosure reveals that consumer prices rose 475.3% in 2025 — the highest inflation rate in the world. Unemployment, meanwhile, surged to 35.1%, reflecting the hollowing-out of a once-diversified economy. With the lending rate at 9.4% and real GDP per capita contracting by 1.6%, every component of HAMI conspires against the Venezuelan people.

Venezuela’s score is not merely the highest in the 2025 edition; it is among the highest ever recorded by HAMI. Until Venezuela replaces the bolívar with the U.S. dollar and establishes the rule of law and property rights, it will remain the world’s most miserable country.

Sudan: Civil War Without End

Sudan drops from first place in 2024 to second, but any improvement in relative standing offers cold comfort to the Sudanese people. The civil war between the Sudanese Armed Forces and the Rapid Support Forces — now in its third year — continues to devastate economic activity, displace millions, and fuel inflation. Sudan’s unemployment rate remains an extraordinary 55.7% — the highest in the world — reflecting the near-total destruction of formal labor markets in the war zones. Inflation, which peaked above 200% in 2024, has moderated to 68.1%. But the bank-lending rate remains at 37%, and real GDP per capita has contracted by 8.9%.

Until the guns fall silent, the HAMI will keep Sudan near the top of the world’s misery rankings.

Turkey: The Interest-Rate Trap

Turkey rises two ranks to third most miserable with a HAMI score of 101.0, driven primarily by a bank-lending rate of 56.7% — the highest in the top ten. Since the Central Bank of the Republic of Turkey reversed its unorthodox monetary policy in mid-2023 and embarked on an aggressive tightening cycle, lending rates have reached punishing levels. Inflation has come down from its 2024 peak but remains elevated at 30.9%. Unemployment stands at 8.4%. Turkey will only come down on HAMI if it adopts a currency board, like the one I helped design and implement in Bulgaria in 1997.

The Year’s Most Notable Movers

Syria: From Third to Thirty-Third

Syria’s improvement of 29 positions — from 3rd most miserable in 2024 to 33rd in 2025 — is among the most remarkable stories in this year’s edition. In December 2024, a rebel offensive led by Hayat Tahrir al-Sham swept through the country with stunning speed, toppling the Assad regime that had ruled Syria since 1970.

The economic effects have been immediate. Syria’s consumer prices fell 12.2 percentage points in 2025, reflecting both the disinflationary shock of regime change and the easing of some war-era supply bottlenecks. But the HAMI score of 41.2 still reflects deep structural damage: unemployment remains at 18%, and real GDP per capita contracted at an annual rate of 5.4%.

Argentina: Progress, Not Yet Salvation

Argentina improves from being the 2nd most miserable country in 2024 to 5th in 2025, with its HAMI score falling from 195.9 to 88.4. This is a tribute to President Javier Milei’s shock-therapy program: inflation fell from 118% to 31.5%, and real GDP per capita grew by 4.0%. However, Argentina’s bank-lending rate stands at a punishing 46%, reflecting the residual cost of years of monetary mismanagement. Unemployment is 7.4%.

Argentina’s improvement of more than 107 HAMI points in a single year is nonetheless noteworthy. It is the largest score reduction of any country in the 2025 edition and a compelling case study in what a determined government can accomplish when it chooses economic sanity over populist spending.

Bolivia: The Year’s Largest Deterioration

Bolivia’s collapse of 47 positions — from 75th most miserable in 2024 to 28th in 2025 — is the largest deterioration of any country in this year’s edition. Bolivia’s HAMI score of 44.0 is driven by a sharp surge in inflation to 20.4%, as the country’s foreign-exchange reserves have been depleted and the government’s ability to maintain its fixed exchange rate has come under severe strain. Real GDP per capita contracted by 1.4%.

Burkina Faso: The Largest Improvement

Burkina Faso’s climb of 69 positions — from 101st most miserable in 2024 to 170th in 2025 — earns it the distinction of the single largest rank improvement in the 2025 edition. Consumer prices actually fell 2.2%, the lending rate declined, and unemployment edged lower, all of which combined to push its HAMI score to just 7.4 — placing it among the ten happiest economies in the world. The improvement is partly driven by favorable commodity dynamics and a statistical rebase, but it is nonetheless a striking result for a Sahelian nation grappling with insurgency and political instability.

Ireland: Growth as a Superpower

Ireland’s ascent of 54 positions — from 121st most miserable in 2024 to 175th in 2025 — makes it the fourth-happiest economy in the world and the second-largest rank improver. Ireland’s engine is a stunning real GDP growth per capita of 11.2%, fueled by multinational corporate activity and Ireland’s position as a European hub for technology and pharmaceutical firms. With unemployment at 4.7%, inflation at 2.7%, and a lending rate of 4.4%, Ireland’s economic headwinds are modest — though it bears noting that Ireland’s GDP figures are well-known to be inflated by multinational corporate booking activity, a quirk that may overstate the welfare gains felt by ordinary Irish residents.

Iran: Sanctions Bite Harder

Iran’s deterioration of 12 positions — from 16th most miserable in 2024 to 4th in 2025 — places Iran in the world’s top five most miserable economies for the first time since the HAMI began its modern coverage. The dominant driver is inflation at 52.6%, fueled by chronic fiscal deficits, ongoing sanctions, and a depreciating rial. The bank-lending rate of 24% adds to the burden. With real GDP per capita contracting by 2.9%, every arrow in Iran’s HAMI points in the wrong direction.

The World’s Happiest Economies

The ten happiest countries in the world in 2025, listed by ascending rank order, were Taiwan, Singapore, Thailand, Ireland, Côte d’Ivoire, Macau, Japan, Qatar, Burkina Faso, and Guinea-Bissau. I highlight the top three below.

Taiwan: The World’s Happiest Economy

Taiwan retains the title of the world’s happiest economy for the second consecutive year, with a HAMI score of 2.1 — the lowest of any country in the 2025 edition. The secret ingredient is real GDP growth per capita of 9.2%, powered by insatiable global demand for Taiwan’s semiconductors and artificial intelligence hardware. Unemployment is low at 3.3%, inflation subdued at 1.3%, and the bank-lending rate at 3.3%.

Geopolitical threats from China notwithstanding, Taiwan’s economy in 2025 is firing on all cylinders.

Singapore: Monetary Discipline Made Manifest

Singapore is a perennial contender at the happiest end of the HAMI, and 2025 is no exception. With a score of 2.6, Singapore’s performance reflects near-full employment at 2.0% unemployment, well-anchored inflation at 1.2%, and solid GDP growth of 4.3% per capita.

Thailand: Consistent Excellence

Thailand is the third-happiest economy in the world in 2025, with a HAMI score of 3.1. Consumer prices actually fell 0.3% — mild deflation — while unemployment stayed at 0.8%. Real GDP per capita grew 2.5%. Thailand’s consistent appearance near the bottom of the HAMI table is no accident: the Bank of Thailand’s monetary framework has delivered low inflation and stable employment for more than a decade.

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