Each year, I produce Hanke\u2019s Annual Misery Index (HAMI). They call me the \u201cmoney doctor\u201d for my globe-spanning career of economic advisory missions, and by using readily available economic data, I can measure the temperature of the patient, so to speak, to determine just how \u201cmiserable\u201d or \u201chealthy\u201d an economy is.<\/p>\n
The idea of a misery index was fathered by Arthur Okun, a distinguished economist and Yale professor who served as chairman of the President\u2019s Council of Economic Advisers from 1968 to 1969 during President Lyndon B. Johnson\u2019s administration. Johnson wanted an easy way to take the economy\u2019s temperature. Okun\u2019s index, which he used for the United States, is equal to the sum of the inflation and unemployment rates.<\/p>\n
Okun\u2019s 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.<\/p>\n
In 2009, I amended Barro\u2019s 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.<\/p>\n
Then, in 2022, I made a further amendment to HAMI. Following Andrew Oswald\u2019s (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.<\/p>\n
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.<\/p>\n
Unlike Okun and Barro, who focused on the United States, HAMI covers many foreign countries; 178 are included in the 2025 edition \u2014 a new record.<\/p>\n
Rank (Worst to Best)CountryMisery IndexMajor Contributing Factor1Venezuela556.4916Inflation2Sudan225.3674Inflation3Turkey100.9610Lending rate4Iran95.8785Inflation5Argentina88.3548Inflation6Eswatini80.0417Unemployment7South Africa79.0287Unemployment8Malawi75.1526Inflation9Madagascar73.9617Lending rate10Lebanon72.4354Unemployment11Haiti72.3550Inflation12Angola72.3312Lending rate13Yemen70.9509Lending rate14Myanmar65.8942Inflation15Zimbabwe64.7210Lending rate16Djibouti60.6007Unemployment17Botswana60.0948Unemployment18Bosnia and Hercegovina59.6779Unemployment19Brazil59.6366Lending rate20Gabon58.5675Unemployment21Ukraine55.5641Lending rate22Palestinian Territories52.4679Inflation23Namibia50.8055Unemployment24Congo (brazzaville)49.7878Unemployment25Lesotho48.5402Unemployment26Egypt46.4752Unemployment27S\u00e3o Tom\u00e9 and Pr\u00edncipe45.7870Lending rate28Bolivia44.0357Inflation29Tunisia43.8642Unemployment30Suriname43.5723Lending rate31Iraq41.9677Unemployment32Jordan41.2703Unemployment33Syria41.1575Unemployment34Georgia40.0072Lending rate35St. Vincent and the Grenadines39.1071Unemployment36Rwanda38.9303Lending rate37Nigeria37.8900Inflation38Mauritania37.8311Lending rate39Kazakhstan37.8157Lending rate40Cuba37.4372Inflation41Mozambique37.3164Lending rate42Congo (Democratic Republic)36.8888Lending rate43Uzbekistan36.5478Lending rate44Libya36.0237Unemployment45Pakistan35.7077Lending rate46Colombia35.5889Lending rate47Tajikistan35.5166Lending rate48The Gambia34.1847Inflation49Honduras34.0335Lending rate50Ghana32.9663Lending rate51Equatorial Guinea32.8624Unemployment52Armenia32.8246Lending rate53Zambia31.7050Inflation54Burundi31.0339Inflation55Mongolia30.6199Lending rate56Nepal30.3327Unemployment57Guinea30.1743Lending rate58Azerbaijan30.0473Lending rate59Russia29.2889Lending rate60Romania29.2253Lending rate61Central African Republic29.0967Lending rate62Sierra Leone29.0507Lending rate63Dominican Republic28.4691Lending rate64Ethiopia28.4599Inflation65Kenya28.1463Lending rate66Cabo Verde27.3768Unemployment67North Macedonia27.3600Unemployment68Montenegro27.0721Unemployment69Kyrgyz Republic26.8306Lending rate70Algeria26.7545Unemployment71Uruguay26.4952Lending rate72St. Lucia26.3988Unemployment73Estonia25.6007Lending rate74Paraguay25.4389Lending rate75Turkmenistan25.1167Lending rate76Spain25.0209Unemployment77New Zealand24.2175Lending rate78Chile24.0089Unemployment79Serbia23.9988Unemployment80Bangladesh23.5174Inflation81Peru23.2992Lending rate82Iceland23.1386Lending rate83Uganda23.1103Lending rate84Jamaica23.0654Lending rate85Sweden23.0602Unemployment86India22.8678Lending rate87Finland22.8516Unemployment88Greece22.0346Unemployment89Bahamas21.9260Unemployment90Mauritius21.7778Lending rate91Austria21.2547Unemployment92Morocco20.9561Unemployment93Belarus20.9546Lending rate94Chad20.8856Lending rate95Albania20.7536Unemployment96Liberia20.6153Lending rate97Guyana20.2438Unemployment98Canada20.1265Lending rate99Latvia20.0960Unemployment100Vanuatu20.0738Unemployment101Barbados20.0567Lending rate102Moldova20.0445Lending rate103United Kingdom19.5658Lending rate104Australia19.3127Lending rate105Hungary19.2113Lending rate106Grenada19.1454Unemployment107Tanzania19.0507Lending rate108Panama18.5593Lending rate109Saudi Arabia18.4771Unemployment110Trinidad and Tobago18.4258Lending rate111Norway18.2306Lending rate112Lithuania18.1663Unemployment113Mexico18.0361Lending rate114Luxembourg17.8248Unemployment115France17.7502Unemployment116Brunei Darussalam17.2724Lending rate117Portugal17.2235Unemployment118Bhutan17.1581Lending rate119United States of America16.9914Lending rate120Cameroon16.9646Lending rate121Comoros16.9339Lending rate122Slovakia16.8836Unemployment123Indonesia16.8365Lending rate124Belgium16.7817Unemployment125Poland16.6983Lending rate126Guatemala16.5731Lending rate127Italy16.5080Unemployment128Maldives16.0715Lending rate129Laos15.7370Lending rate130Bulgaria15.6794Unemployment131Philippines15.4527Lending rate132Samoa15.3930Lending rate133Papua New Guinea15.2268Lending rate134Sri Lanka15.0788Lending rate135Costa Rica15.0245Lending rate136Oman14.9899Lending rate137Cyprus14.9736Lending rate138El Salvador14.7963Lending rate139Aruba14.6604Lending rate140Nicaragua14.4940Lending rate141Ecuador14.3882Lending rate142Slovenia13.0329Unemployment143Solomon Islands12.7097Lending rate144Israel12.5367Lending rate145Netherlands12.3493Lending rate146Belize12.3056Lending rate147Germany12.2414Unemployment148United Arab Emirates12.0468Lending rate149Kuwait11.8885Lending rate150Croatia11.8879Unemployment151Seychelles11.7562Lending rate152Fiji11.7446Unemployment153Mali11.6533Lending rate154Tonga11.3273Inflation155South Korea11.0247Lending rate156Vietnam10.7388Lending rate157Niger10.1974Inflation158Hong Kong10.0374Lending rate159Denmark10.0239Lending rate160Bahrain9.7109Lending rate161Malta9.4606Unemployment162Togo9.3834Lending rate163Cambodia8.7539Lending rate164China8.7389Unemployment165Senegal8.7090Lending rate166Czech Republic8.5105Lending rate167Malaysia8.4561Lending rate168Switzerland7.7732Lending rate169Guinea-Bissau7.3984Lending rate170Burkina Faso7.3807Lending rate171Qatar7.2405Lending rate172Japan7.2005Inflation173Macau6.6637Lending rate174C\u00f4te D\u2019ivoire6.2886Lending rate175Ireland5.3470Lending rate176Thailand3.1417Lending rate177Singapore2.5939Lending rate178Taiwan2.1159Unemployment<\/p>\n
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.<\/p>\n
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.<\/p>\n
Calculations by Professor Steve H. Hanke, The Johns Hopkins University<\/p>\n
The Rankings in Context<\/p>\n
The 20 countries that are most miserable in 2025 are, once again, a familiar rogue\u2019s gallery. Of the 20 most miserable countries in 2024, 17 remain in 2025\u2019s top 20. Syria \u2014 which occupied a dismal third place in 2024 \u2014 has made the most dramatic exit, plunging all the way to 33rd following the fall of the Assad regime. Egypt and S\u00e3o Tom\u00e9 and Pr\u00edncipe 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\u2019s happiest economy for the second consecutive year, and Ireland \u2014 powered by extraordinary GDP growth \u2014 has climbed an impressive 54 positions to become the fourth-happiest economy on earth.<\/p>\n
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.<\/p>\n
Venezuela: A Catastrophe Without Precedent<\/p>\n
Venezuela seizes this year\u2019s top position as the world\u2019s most miserable country, with a HAMI score of 556.5 \u2014 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 bol\u00edvar into free fall. The Banco Central de Venezuela\u2019s own belated disclosure reveals that consumer prices rose 475.3% in 2025 \u2014 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.<\/p>\n
Venezuela\u2019s score is not merely the highest in the 2025 edition; it is among the highest ever recorded by HAMI. Until Venezuela replaces the bol\u00edvar with the U.S. dollar and establishes the rule of law and property rights, it will remain the world\u2019s most miserable country.<\/p>\n
Sudan: Civil War Without End<\/p>\n
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 \u2014 now in its third year \u2014 continues to devastate economic activity, displace millions, and fuel inflation. Sudan\u2019s unemployment rate remains an extraordinary 55.7% \u2014 the highest in the world \u2014 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%.<\/p>\n
Until the guns fall silent, the HAMI will keep Sudan near the top of the world\u2019s misery rankings.<\/p>\n
Turkey: The Interest-Rate Trap<\/p>\n
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% \u2014 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.<\/p>\n
The Year\u2019s Most Notable Movers<\/p>\n
Syria: From Third to Thirty-Third<\/p>\n
Syria\u2019s improvement of 29 positions \u2014 from 3rd most miserable in 2024 to 33rd in 2025 \u2014 is among the most remarkable stories in this year\u2019s 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.<\/p>\n
The economic effects have been immediate. Syria\u2019s 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%.<\/p>\n
Argentina: Progress, Not Yet Salvation<\/p>\n
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\u2019s shock-therapy program: inflation fell from 118% to 31.5%, and real GDP per capita grew by 4.0%. However, Argentina\u2019s bank-lending rate stands at a punishing 46%, reflecting the residual cost of years of monetary mismanagement. Unemployment is 7.4%.<\/p>\n
Argentina\u2019s 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.<\/p>\n
Bolivia: The Year\u2019s Largest Deterioration<\/p>\n
Bolivia\u2019s collapse of 47 positions \u2014 from 75th most miserable in 2024 to 28th in 2025 \u2014 is the largest deterioration of any country in this year\u2019s edition. Bolivia\u2019s HAMI score of 44.0 is driven by a sharp surge in inflation to 20.4%, as the country\u2019s foreign-exchange reserves have been depleted and the government\u2019s ability to maintain its fixed exchange rate has come under severe strain. Real GDP per capita contracted by 1.4%.<\/p>\n
Burkina Faso: The Largest Improvement<\/p>\n
Burkina Faso\u2019s climb of 69 positions \u2014 from 101st most miserable in 2024 to 170th in 2025 \u2014 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 \u2014 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.<\/p>\n
Ireland: Growth as a Superpower<\/p>\n
Ireland\u2019s ascent of 54 positions \u2014 from 121st most miserable in 2024 to 175th in 2025 \u2014 makes it the fourth-happiest economy in the world and the second-largest rank improver. Ireland\u2019s engine is a stunning real GDP growth per capita of 11.2%, fueled by multinational corporate activity and Ireland\u2019s 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\u2019s economic headwinds are modest \u2014 though it bears noting that Ireland\u2019s 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.<\/p>\n
Iran: Sanctions Bite Harder<\/p>\n
Iran\u2019s deterioration of 12 positions \u2014 from 16th most miserable in 2024 to 4th in 2025 \u2014 places Iran in the world\u2019s 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\u2019s HAMI points in the wrong direction.<\/p>\n
The World\u2019s Happiest Economies<\/p>\n
The ten happiest countries in the world in 2025, listed by ascending rank order, were Taiwan, Singapore, Thailand, Ireland, C\u00f4te d\u2019Ivoire, Macau, Japan, Qatar, Burkina Faso, and Guinea-Bissau. I highlight the top three below.<\/p>\n
Taiwan: The World\u2019s Happiest Economy<\/p>\n
Taiwan retains the title of the world\u2019s happiest economy for the second consecutive year, with a HAMI score of 2.1 \u2014 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\u2019s semiconductors and artificial intelligence hardware. Unemployment is low at 3.3%, inflation subdued at 1.3%, and the bank-lending rate at 3.3%.<\/p>\n
Geopolitical threats from China notwithstanding, Taiwan\u2019s economy in 2025 is firing on all cylinders.<\/p>\n
Singapore: Monetary Discipline Made Manifest<\/p>\n
Singapore is a perennial contender at the happiest end of the HAMI, and 2025 is no exception. With a score of 2.6, Singapore\u2019s performance reflects near-full employment at 2.0% unemployment, well-anchored inflation at 1.2%, and solid GDP growth of 4.3% per capita.<\/p>\n
Thailand: Consistent Excellence<\/p>\n
Thailand is the third-happiest economy in the world in 2025, with a HAMI score of 3.1. Consumer prices actually fell 0.3% \u2014 mild deflation \u2014 while unemployment stayed at 0.8%. Real GDP per capita grew 2.5%. Thailand\u2019s consistent appearance near the bottom of the HAMI table is no accident: the Bank of Thailand\u2019s monetary framework has delivered low inflation and stable employment for more than a decade.<\/p>\n
The opinions expressed in Fortune.com commentary pieces are solely the views of their authors and do not necessarily reflect the opinions and beliefs of Fortune.<\/p>\n","protected":false},"excerpt":{"rendered":"Each year, I produce Hanke\u2019s Annual Misery Index (HAMI). They call me the \u201cmoney doctor\u201d for my globe-spanning…\n","protected":false},"author":2,"featured_media":401891,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[72,4990,113,13284,61,1095,60,92549],"class_list":{"0":"post-401890","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-economics","10":"tag-economy","11":"tag-happiness","12":"tag-ie","13":"tag-inflation","14":"tag-ireland","15":"tag-venezuela"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/401890","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=401890"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/401890\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/401891"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=401890"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=401890"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=401890"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}