Karandikars & Associates

World Bank Income Classification

The World Bank Group’s income classifications provide a widely used framework for understanding global economic development and long-term structural change across countries

Each year, the World Bank classifies the world’s economies into four income groups: Low Income, Lower Middle Income, Upper Middle Income, and High Income. These classifications are updated annually on 1 July and are based on the previous year’s Gross National Income (GNI) per capita, expressed in U.S. dollars using the World Bank Atlas method

Since the late 1980s, the global distribution of countries across income categories has changed significantly. The number of low-income countries has steadily declined, while the number of high-income countries has increased, reflecting broad improvements in income levels across many parts of the world

In 1987, around 30% of reporting countries were classified as Low Income, while about 25% were classified as High Income. By 2024, this distribution had shifted markedly, with the share of low-income countries declining to around 12%, and the share of high-income countries rising to about 40%

For the 2026 fiscal year (1 July 2025 to 30 June 2026), the World Bank defines:

Low-income economies as those with a GNI per capita of $1,135 or less (2024, Atlas method),
Lower middle-income economies as those with GNI per capita between $1,136 and $4,495,
Upper middle-income economies as those with GNI per capita between $4,496 and $13,935, and
High-income economies as those with GNI per capita above $13,935

The table below captures the year-wise income classification of individual countries, allowing readers to observe long-term transitions, persistence within income groups, and, in some cases, temporary reversals over time

India transitioned from the Low Income group to the Lower Middle Income group in 2007, and has remained in the Lower Middle Income category since then

China first moved from the Low Income group to the Lower Middle Income group in 1997, briefly reverted to the Low Income group in 1998, and moved back to the Lower Middle Income group in 1999, where it remained until 2009. China transitioned to the Upper Middle Income group in 2010, and has remained in that category since

Explore World Bank's Country-wise Income Classification