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World Bank: 6 Nations Ascend to Higher Income Tiers
6 Jul
Summary
- Six countries upgraded income status by World Bank.
- Upgrades due to growth, data improvements, or population changes.
- India remains in lower-middle-income category due to population.
Six countries have successfully advanced to higher income categories in the World Bank's latest economic classification, which is updated annually on July 1 and remains in effect for three years. This progress highlights diverse strategies for economic advancement.
Vietnam, the Philippines, Sri Lanka, Micronesia, and Jordan have moved from the lower-middle-income group to upper-middle income. Togo has progressed from the low-income to the lower-middle-income category. No nations were downgraded.
Vietnam's upgrade was fueled by robust export-led growth exceeding 15% in 2024 and 2025. The Philippines achieved its status through broad-based economic expansion across multiple sectors. Sri Lanka's improvement followed a significant economic recovery after its 2022 crisis, with a 5% GDP growth in 2025.
Jordan's reclassification resulted primarily from a revision of national accounts, revealing its economy was larger than previously estimated. Togo benefited from a downward revision in its population census data, which increased its per capita income. These shifts demonstrate that economic progress can be achieved through growth, data refinement, or demographic adjustments.
Meanwhile, India remains in the lower-middle-income bracket. Despite being one of the world's fastest-growing economies, its per capita income has not yet reached the threshold for the upper-middle-income group, largely due to its substantial population. Sustained growth and faster per capita income increases are needed for India's reclassification.
