World Bank Classifies Global Economies by Income, Highlights Economic Shifts
The World Bank has released its latest classification of global economies based on gross national income (GNI) per capita, categorizing countries into four income groups: low, lower-middle, upper-middle, and high income. This classification uses the World Bank's Atlas method to convert local currencies into U.S. dollars, smoothing short-term exchange-rate fluctuations. The high-income threshold is set above $14,375 for fiscal year 2027. Notably, China has transitioned from a low-income to an upper-middle-income economy over recent decades, while Russia is now classified as high income. The classification highlights the concentration of high-income economies in North America, Europe, East Asia, and Oceania, including the United States, Canada, and Japan. 
