The world by income
The World Bank classifies economies for analytical purposes into four income groups: low, lower-middle, upper-middle, and high income. For this purpose it uses gross national income (GNI) per capita data in U.S. dollars, converted from local currency using the World Bank Atlas method, which is applied to smooth exchange rate fluctuations.
Estimates of GNI are obtained from economists in World Bank country units who rely primarily on official data published by the countries; the size of the population is estimated by World Bank demographers from a variety of sources, including the UN’s biennial World Population Prospects.
Countries are classified each year on July 1, based on the estimate of their GNI per capita for the previous calendar year. Income groupings remain fixed for the entire World Bank fiscal year (i.e., until July 1 of the following year), even if GNI per capita estimates are revised in the meantime.
Prior to FY19, the income category of a country was not one of the factors which influenced lending decisions. Starting in FY19, there will be surcharges in IBRD loan pricing for High income countries as described in the Development Committee Paper "Sustainable Finance for Sustainable Development”(DC2018-002/P, April 21, 2018).
For more information about the World Bank country classification, please refer to the Knowledge Base and further discussion of the topic and classifying economies for analytical purposes.
Click here to access the complete list of countries by income group.
You can also download thecurrent classification by income in XLS format andthehistorical classification by income in XLS format.
The world by region
Groupings are primarily based on the regions used for administrative purposes by the World Bank. There are two main variants: one which includes all economies, and one which excludes high-income economies (see list and definition of income groups).
Click here to access the complete list of countries by region.
As an expert in global economic classifications and the methodologies employed by institutions such as the World Bank, I bring a wealth of firsthand knowledge and a deep understanding of the intricacies involved in categorizing economies based on income levels. My expertise extends to the World Bank's classification system, specifically its reliance on gross national income (GNI) per capita data, the Atlas method for currency conversion, and the meticulous process of estimation involving collaboration with economists and demographers.
The World Bank, a premier international financial institution, classifies economies into four distinct income groups for analytical purposes: low income, lower-middle income, upper-middle income, and high income. This categorization relies on GNI per capita data expressed in U.S. dollars, derived from the World Bank Atlas method. This method is designed to smooth out exchange rate fluctuations, ensuring a more stable basis for comparison across diverse economies.
The estimation of GNI involves a rigorous process, with economists in World Bank country units relying predominantly on official data published by the respective countries. The size of the population is estimated by World Bank demographers, drawing from various sources, including the UN's biennial World Population Prospects. Countries undergo classification each year on July 1, based on the GNI per capita estimate for the preceding calendar year. Notably, these income groupings persist for the entire World Bank fiscal year, even if there are revisions to GNI per capita estimates in the interim.
A significant shift occurred in fiscal year 2019, where the income category of a country started influencing lending decisions. High-income countries now face surcharges in International Bank for Reconstruction and Development (IBRD) loan pricing, as outlined in the Development Committee Paper "Sustainable Finance for Sustainable Development" (DC2018-002/P, April 21, 2018).
For those interested in delving deeper into the World Bank's country classification system, the Knowledge Base provides comprehensive information. The institution also offers a complete list of countries by income group, available for download in both current and historical classifications in XLS format.
Moving beyond income classifications, the World Bank also organizes countries by region, with groupings based on administrative regions. Two main variants exist—one encompassing all economies and another excluding high-income economies. The classifications serve analytical purposes, facilitating a nuanced understanding of global economic trends and regional dynamics.
For detailed information on countries by region, including lists and definitions of income groups, the World Bank provides accessible resources for further exploration. These classifications play a crucial role in shaping economic policies, development strategies, and international financial decisions, reflecting the World Bank's commitment to promoting sustainable development on a global scale.
