The rankings of the world's "most painful" and "least painful" economies are out! Among 178 economies, Venezuela has the highest Misery Index score of 556.5, more than twice the second-placed Sudan score of 225.4. Taiwan scored 2.1, Singapore 2.6 and Thailand 3.1 ranked lowest, that is, the countries with the least economic pain.
What factors lead to an economic downturn? The answer boils down to economic pressures such as inflation, unemployment and borrowing costs, with the biggest challenges facing countries varying significantly, according to the Economic Pain Index. Visual Capitalist ranked 178 economies using the 2025 Hanke Annual Misery Index, which combines inflation, unemployment, bank lending rates and per capita real GDP growth into a single score. The scores are arranged in order from high to low, with the first ranking representing the worst economic situation under the index.
Venezuela tops the list with 556.5 points, followed by Sudan with 225.4 points. Türkiye ranked third with a score of 101.0, with Iran and Argentina completing the top five.
Venezuela's score is unusually high, mostly related to inflation. Hanke reported that consumer prices in Venezuela will increase by 475.3% in 2025, while the unemployment rate will be as high as 35.1%.
Sudan's economy has also been affected by civil war, which disrupted economic activity and employment. Its misery index score is more than twice that of third-ranked Türkiye.
The United States ranked 119th, with a score of 17.0 points; Canada ranked 98th, with a score of 20.1 points; the United Kingdom and Australia ranked 103rd and 104th respectively, with scores below 20 points.
Countries with a high misery index do not necessarily face the same economic problems. Inflation is the biggest factor behind high misery indices in Venezuela, Sudan, Iran and Argentina, while unemployment remains high in South Africa and Swaziland. The situation in Türkiye is different. Although it ranks third overall, bank loan interest rates are the most important factor affecting its ranking. The situation is similar for Brazil, which ranks 19th with a score of 59.6.
Taiwan has the lowest misery index score of all 178 economies, at only 2.1. Singapore follows closely behind with a score of 2.6, while Thailand ranks third from the bottom with a score of 3.1. Ireland ranked fourth from the bottom with 5.3, Cote d'Ivoire ranked fifth from the bottom with 6.3 points, Macau ranked sixth from the bottom with 6.7 points, and Japan ranked seventh from the bottom with 7.2 points.
Taiwan's status reflects a series of relatively favorable economic indicators, including strong real GDP growth per capita. Hanke's analysis links its economic performance to demand for semiconductors and artificial intelligence-related hardware.
Across all economies analyzed, lending rates were the most influential factor in 105 of the 178 economies. The unemployment rate was the largest factor in 54 economies, while the inflation rate was the largest factor in 19 economies.
The results suggest that economies with similar scores may face very different challenges. Some economies are plagued primarily by unemployment, while others face rapid price increases or high borrowing costs.
It is important to note that even countries with low economic scores are experiencing economic stress. Unemployment is Taiwan's biggest economic stressor, while Singapore, Thailand and Ireland have the highest loan interest rates.
Hank's version adds bank lending rates and per capita real GDP growth. The formula is: the inflation rate plus twice the unemployment rate plus loan interest rates, minus the per capita real GDP growth rate. Because the unemployment rate is weighted twice as much as the unemployment rate, changes in employment conditions can have a greater impact on the index than equivalent changes in inflation.
The index measures specific macroeconomic stresses rather than happiness, life satisfaction or overall living standards. It is a tool for comparing economic conditions rather than a direct measure of how people feel about their lives.
