New Classifications

The World Bank now groups countries into four income categories—low, lower-middle, upper-middle, and high—based on gross national income (GNI) per capita, converted to U.S. dollars using the World Bank Atlas method to smooth out exchange rate swings.

GNI estimates come from World Bank economists using official national data, while population figures are compiled by World Bank demographers, drawing from sources like the UN’s World Population Prospects.

Each July 1, countries are reclassified based on the previous year’s GNI per capita, and that status holds for the full fiscal year—even if later revisions occur.

Starting in FY19, high-income countries face surcharges on IBRD loans, as outlined in the Development Committee's paper “Sustainable Finance for Sustainable Development” (April 2018), marking a shift from earlier policies where income classification didn’t affect lending terms.