This classification helps researchers, policymakers, and development agencies compare countries in a standard way. It indicates which countries are rich, poor, or in between, using a clear rule.
The World Bank classifies countries into four income groups:
The classification is based on Gross National Income (GNI) per capita, which is the total income of a country’s residents divided by its population. This includes income earned both domestically and from abroad.
As per the latest update (in U.S. dollars):
Yes. They are adjusted each July to account for global inflation and currency changes.
Yes. If a country’s GNI per capita rises or falls, it may move up or down the income ladder. Other factors such as economic shocks, conflicts, or updated census data are also considered.
Wars, natural disasters, or financial crises can reduce income levels. Countries like Syria and Yemen have experienced downward movement due to conflicts.
No. The World Bank converts income data into U.S. dollars using a method that adjusts for price levels across countries, rather than daily exchange rates, to ensure fair comparisons.
The classification guides global institutions and governments in:
The share has dropped because some countries previously classified as high income have fallen below the threshold due to slower growth or global crises.
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