The World Bank Group assigns the world’s economies^[1] to four income groups: low, lower-middle, upper-middle, and high. The classifications are updated each year on July 1, based on the GNI per capita of the previous calendar year. GNI measures are expressed in United States dollars^[2] using conversion factors derived according to the Atlas method, which in its current form was introduced in 1989^[3]. The World Bank’s income classification aims to reflect a country’s level of development, drawing on Atlas GNI per capita as a broadly available indicator of economic capacity.

The classification of countries into income categories has evolved significantly over the period since the late 1980s. In 1987, 30% of reporting countries were classified as low-income and 25% as high-income countries. Jumping to 2023, these overall ratios have shifted down to 12% in the low-income category and up to 40% in the high-income category.  Click here to read the full article