Money and power do not stay constant for anyone, and countries are no different. History has shown us that several countries, once rich with booming economies, are now struggling with economic ruin. These changes may happen due to wars, economic decisions taken by governments, or other natural disasters.
This article explores 12 countries that were once wealthy but have faced significant economic decline since then.
Venezuela
Venezuela, once a wealthy nation with vast oil reserves, has fallen into poverty due to years of corruption and government mismanagement. Between 2013 and 2023, living standards in oil-rich Venezuela dropped by an incredible 74%, marking the fifth-largest decline in modern economic history.
During the oil boom of the early 2000s, instead of saving money, the government spent heavily, borrowed excessively, and printed money, leading to high inflation. When oil prices dropped in 2014, Venezuela was unprepared. Venezuela’s economy collapsed due to the government’s poor economic choices combined with US sanctions. This led to hyperinflation and widespread shortages, and millions left the country.
Turkey
The Ottoman Empire held a prominent place in late medieval Europe. During its height in the 16th century under Sultan Suleiman the Magnificent, Turkey flourished with vast wealth, formidable military power, and remarkable artistic accomplishments. Its influence extended across parts of Europe, Africa, and the Middle East.
Internal divisions, corruption, and overexpansion eventually led to its decline. The empire sided with Germany in World War I and suffered territorial losses, which led to the scaled-down Republic of Turkey in 1922. With a moderate GDP per capita of around $14,713, modern Turkey can’t be called poor but stands in contrast to its illustrious past as the Ottoman Empire, a global economic and cultural powerhouse.
Cuba
Before the revolution of 1959, Cuba was among the leading Latin American countries in terms of several economic indicators, such as GDP, inflation control, fiscal stability, and investment. According to UN estimates, Cuba had a per capita GDP of $370 in 1958, ranking fifth among 20 Latin American countries.
Until its collapse in 1991, the Soviet Union provided Cuba with subsidies and political and military support. When this support was withdrawn, it further destroyed the economy.
Decades of communist rule, economic mismanagement, and US sanctions contributed to the long-term decline of Cuba. The COVID-19 pandemic deepened Cuba’s economic crisis further and led to record levels of migration.
Zimbabwe
After gaining independence from the British in 1980, Zimbabwe initially experienced a period of progress thanks to its natural resources and farming. However, this country, once known as southern Africa’s breadbasket, faced economic collapse due to mismanagement under Robert Mugabe. His controversial land reforms in the late 1990s devastated agriculture.
Hyperinflation peaked at an astonishing 79.6 billion percent in 2008, erasing savings and livelihoods. Despite efforts to recover, political instability, corruption, and trade embargoes continue to hinder the progress of this country, leaving much of the population in poverty. Recent oil and gas discoveries offer a glimmer of hope.
Iraq
In the 1970s, Iraq was a regional powerhouse with one of the highest living standards due to its oil wealth, modern infrastructure, and robust social services. By 1980, the country’s GDP per capita rose to $5,955. Unfortunately, Iraq’s economy suffered greatly due to years of conflict, sanctions, and mismanagement under Saddam Hussein. By 1991, its GDP per capita had fallen sharply to $1,172.
Iraq continues to struggle today despite its oil reserves producing around 4 million barrels per day in 2025. Poverty affects approximately one-third of its population. Issues like inadequate infrastructure and water shortages continue to hinder progress. Efforts to rebuild remain challenged by systemic corruption and a lack of economic diversification.
Argentina
At the beginning of the 20th century, Argentina was considered among the wealthiest nations ever. Its rich alluvial soil, in addition to its position for transatlantic trade, helped the economic boom.
When Juan Peron became the president of Argentina in the 1940s, it was a turning point for the economy. Peron’s socialist policies were initially popular but they had long-term consequences that weakened the economy.
Over the years, repeated economic crises and political instability, led to further decline. From 2017 to 2020, GDP per capita plummeted by 39%, falling from $14,613 to $8,501.
In 2022, the country experienced a staggering 94.8% inflation rate, severely impacting incomes and savings. Approximately 40.1% of Argentinians now live in poverty.
Nauru
Nauru, a tiny Pacific island nation with a population of 13,000, experienced a dramatic shift from immense wealth to economic hardship. In the 1970s, phosphate mining made it one of the world’s wealthiest nations. It had the second-highest GDP per capita globally, and the government invested $1 billion into trust funds.
However, the mismanagement of funds and the depletion of phosphate reserves by the 1980s resulted in severe debt and near-bankruptcy. Today, poverty is widespread in Nauru. The country now depends on income from an Australian immigration detention center, but this, too is set to close in 2025, leaving the country’s future uncertain.
Ukraine
Once a thriving economy, Ukraine has faced significant economic decline due to prolonged conflicts. In 2013, its GDP per capita stood at $4,030, but it dropped to $2,521 by 2015 following the Russian annexation of Crimea. The full-scale war in 2022 caused a devastating 29.1% contraction in the economy, disrupting critical infrastructure and agriculture and slashing exports, particularly grain.
Foreign aid totaling $31 billion in 2022 has been crucial in preventing a complete collapse, but Ukraine continues to face immense challenges in rebuilding and achieving economic stability amidst ongoing instability.
Lebanon
Lebanon’s fall from wealth to economic instability is pretty complicated. Decades of political unrest following the civil war, corruption, and economic mismanagement have eroded Lebanon’s financial stability.
The collapse of the Lebanese pound due to unsustainable policies of the government and chronic deficits has become a symbol of this decline. Critically, GDP per capita plunged from $8,925 in 2018 to $3,824 by 2022, demonstrating the severity of the economic deterioration.
The devastating 2020 Beirut port explosion destroyed vital infrastructure and shattered investor confidence, further amplifying these issues. Today, Lebanon grapples with hyperinflation, widespread poverty, and a struggling economy, highlighting the devastating consequences of long-term systemic failures.
Libya
Libya’s economic fortunes have drastically reversed since the fall of Muammar Gaddafi in 2011. Once a wealthy nation, with a GDP per capita of $12,418 in 2010, driven by substantial oil exports, it now faces significant economic instability. Political conflict has severely impacted oil production, and the country’s GDP per capita dropped to 3,699 by 2020.
The ongoing instability has cost Libya an estimated US 600 billion in a decade. Though oil production is recovering due to Central Bank agreements, profound challenges remain. Libya’s economy relies heavily on oil, lacks diversification, and suffers instability, impacting vital services like health and education. While classified as an upper-middle-income country, the future stability of Libya’s economy is reliant on political stability and economic diversification.
Thailand
Thailand, while currently developing, was once a regional powerhouse. The Ayutthaya Kingdom, flourishing in the 16th and 17th centuries, was a wealthy trade hub, rivaling European cities. Its strategic location and open trade policies fueled its prosperity.
Economic decline in the 18th century, internal power struggles, and a devastating Burmese invasion in 1765 led to the collapse of this kingdom. This marked a significant shift, leaving modern Thailand far less powerful than its predecessor.
Iran
Iran, once a wealthy empire, now faces significant economic hardship. Decades of sanctions and internal problems have eroded its prosperity. A recent report reveals that 27% of Iranians live on less than two dollars a day, with soaring inflation and a depreciating currency worsening poverty.
Food prices have dramatically increased, leading to malnutrition, particularly among children. The economy has declined, with per capita income 20% lower than in 2012. Controversial government policies, like the removal of essential goods subsidies, have exacerbated the crisis, pushing more Iranians into extreme poverty.
