The 21 Most Miserable Countries In The World

It's hard to get by when you don't have a job and the price of goods is rising.

That maxim is behind the dramatically named "Misery Index," which adds together a country's unemployment and inflation rates. The higher the number, the more "miserable" your country is.

The index was created by economist Arthur Okun, and it was an extremely popular measurement during the Jimmy Carter and Ronald Reagan presidencies.

There have been some criticisms of the misery index. Extensive studies have shown that unemployment influences happiness (or rather, unhappiness) significantly more than inflation.

Still, few would argue that both unemployment and inflation are bad when they are very high.

Bloomberg's Alex Tanzi compiled a list of the "most miserable countries" in the world according to this index. We highlight the 21 countries that scored 10 or higher.

Some famously miserable countries are noticeably absent from this list. Bloomberg left them off because either the unemployment rate or inflation rate (or both) were absent or dated. But we thought we'd share them with you anyway.

21. Finland

Misery index score: 11.80%

CPI inflation: 0.3%

Unemployment: 11.5%

Exports account for over one-third of Finland's GDP in the past few years. Major export industries include technology for mobile phones, startups, gaming, cleantech, and biotechnology sectors. The rural population focuses on timber export. 

Finland's markets avoided the global financial crisis, but the continued EU recession hurt the economy in 2009 and from 2012 to 2013. Essentially, Finland must figure out how to grow its economy while the European export demand is weak.

Recently, Finland's economy grew in Q2, after contracting in Q1 2014 and Q4 2013.

Source: CIA Factbook, RTT News

20. Chile

Misery index score: 11.80%

CPI inflation: 0.3%

Unemployment: 11.5%

Chile's major industries include copper (which alone provides 19% of government revenue), lithium, foodstuffs, and fish processing. Chile's economy relies on foreign trade — exports of goods and services make up about 33% of Chile's GDP.

Chile is known for its strong financial institutions; it has the strongest sovereign bond rating in South America.

Recently, Chile's economy grew at its slowest pace since 2010. 

Source: CIA Factbook, Bloomberg

19. Brazil

Misery index score: 11.40%

CPI inflation: 6.5%

Unemployment: 4.9%

Brazil was one of the first emerging markets that began recovering after the global financial crisis. Large capital inflows in the past few years led to the appreciation of the currency. However, this has also hurt the domestic manufacturers; the government subsequently raised taxed on some capital inflows.

However, the economy is slowing down (the economy expanded by just 0.2% in Q1 2014, and Q2 is expected to be as low), which has led to the devaluation of the Real.

Major industries include textiles, shoes, chemicals, and cement. Agriculture makes up 5.5% of the GDP.

Source: CIA Factbook, WSJ, Bloomberg, BBC