Since 1987, the World Bank Group has classified countries into four income categories based on their Gross National Income (GNI) per capita. These classifications are updated annually on July 1 and use the Atlas method to calculate GNI measurements in US dollars. The Atlas method was introduced in 1989 and is still used today to indicate a country’s level of development.
The classification of countries into income categories has changed significantly since the late 1980s. In 1987, only 30% of reporting countries were considered low-income, while 25% were classified as high-income. However, by 2023, these ratios had shifted dramatically, with only 12% falling into the low-income category and 40% in the high-income category.
It’s worth noting that these changes in income classifications vary greatly across regions. For example, some regions have seen a significant decrease in the percentage of countries classified as low-income, while others have seen an increase in high-income classifications over time. These shifts reflect the economic growth and development of countries within each region.
Overall, the World Bank’s income classifications serve as an important indicator of a country’s level of development and economic capacity. By tracking these trends over time, we can gain a better understanding of how different regions are progressing economically and identify areas where additional support may be needed to promote further growth and development.