How we Classify Countries

For operational and analytical purposes, the World Bank’s main criterion for classifying economies is gross national income (GNI) per capita. In previous editions of our publications, this term was referred to as gross national product, or GNP. (Learn more about this change in terminology.) Based on its GNI per capita, every economy is classified as low income, middle income (subdivided into lower middle and upper middle), or high income. Other analytical groups based on geographic regions are also used.

A short history

The Bank's analytical income categories (low, middle, high income) are based on the Bank's operational lending categories (civil works preferences, IDA eligibility, etc.). Learn about the history of operational guidelines.

Group definitions

These tables classify all World Bank member countries (188), and all other economies with populations of more than 30,000 (214 total).

Geographic region: Classifications and data reported for geographic regions are for low-income and middle-income economies only. Low-income and middle-income economies are sometimes referred to as developing economies. The use of the term is convenient; it is not intended to imply that all economies in the group are experiencing similar development or that other economies have reached a preferred or final stage of development. Classification by income does not necessarily reflect development status.

Income group: Economies are divided according to 2012 GNI per capita, calculated using the World Bank Atlas method. The groups are: low income, $1,035 or less; lower middle income, $1,036 - $4,085; upper middle income, $4,086 - $12,615; and high income,$12,616 or more.

Lending category: IDA countries are those that had a per capita income in 2012 of less than $1,205 and lack the financial ability to borrow from IBRD. IDA loans are deeply concessional—interest-free loans and grants for programs aimed at boosting economic growth and improving living conditions. IBRD loans are noncessional. Blend countries are eligible for IDA loans because of their low per capita incomes but are also eligible for IBRD loans because they are financially creditworthy.

Notes: Income classifications are set each year on July 1. These official analytical classifications are fixed during the World Bank's fiscal year (ending on June 30), thus countries remain in the categories in which they are classified irrespective of any revisions to their per capita income data. Taiwan, China, is also included in high income.

How does the World Bank classify countries by income?

The World Bank classifies countries according to Gross National Income (GNI, formerly GNP) per capita, into the categories of:

(1) Low income,(2) Lower middle income, (3) Upper middle income and (4) High income.

Use of this classification system does not imply a judgment concerning the development status of any country or territory. The commonly used term "developing countries" corresponds to our low-income and middle-income categories. To find more information about these classifications and their current cutoff figures, please see “How we classify economies” on the World Bank’s data Web site. To view information about the World Bank's listing of "heavily indebted poor countries" (the closest category we have to "least developed economies"), please consult our HIPC pages.

Each year on July 1, The World Bank revises the classification of the world’s economies based on estimates of gross national income (GNI) per capita for the previous year. The updated GNI per capita

estimates are also used as input to the Bank’s operational classification of economies, which determines their lending eligibility. As of 1 July 2013, the World Bank income classifications by GNI per capita are as follows:

Low income: $1,035 or less Lower middle income: $1,036 to $4,085

Upper middle income: $4,086 to $12,615

High income: $12,616 or more

Low- and middle-income economies are sometimes referred to as developing economies. The term is used for convenience; it is not intended to imply that all economies in the group are experiencing similar development or that other economies have reached a preferred or final stage of development.

Changes in classification

The classification tables include all World Bank members, plus all other economies with populations of more than 30,000. The major change for 2013 classification (FY14) is Russian Federation moving to high income. Chile, Lithuania, and Uruguay also become high income for the first time (Latvia had previously been high income in FY11; and Antigua and Barbuda in FY10), while Hungary slips back to upper middle income after being high income since FY09. It is also noteworthy that a major revision to Iraq's data moves them up to upper middle income. The following table summarizes the changes in income classification of countries from last year:

Economy Old group New group

Albania Lower middle Upper middle

Antigua and Barbuda Upper middle High

Belize Lower middle Upper middle

Chile Upper middle High

Fiji Lower middle Upper middle

Hungary High Upper middle

Iraq Lower middle Upper middle

Latvia Upper middle High

Lithuania Upper middle High

Marshall Islands Lower middle Upper middle

Mauritania Low Lower middle

Russian Federation Upper middle High

South Sudan Lower middle Low

Tonga Lower middle Upper middle

Uruguay Upper middle High

Bordering Countries GDP as compared to India?

India’s GDP: 3700

Nepal 1300 Less by 2846 Burma 1300 Less by 2846

Bangladesh: 1700 Less by 2176 China 8500 Greater than 3700