Tuesday, July 2 2024 20:36

ArmInfo. The World Bank has published a country classification by income level for the 2024 fiscal year (July 1, 2023 - June 30, 2024). According to the source, Armenia remains in the upper- middle-income category. In 2023, per capita gross national income was $7,330. In 2022, this level was $5,960, in 2021 - $4,850.

"The World Bank Group assigns the world's economies to four income  groups: low, lower-middle, upper-middle, and high. The  classifications are updated each year on July 1, based on the GNI per  capita of the previous calendar year. GNI measures are expressed in  United States dollars using conversion factors derived according to  the Atlas method, which in its current form was introduced in 1989.  The World Bank's income classification aims to reflect a country's  level of development, drawing on Atlas GNI per capita as a broadly  available indicator of economic capacity.  The classification of  countries into income categories has evolved significantly over the  period since the late 1980s. In 1987, 30% of reporting countries were  classified as low-income and 25% as high-income countries. Jumping to  2023, these overall ratios have shifted down to 12% in the low-income  category and up to 40% in the high-income category,  the source  notes."

Notably, in its report, the World Bank transferred Russia from the  category of countries with an upper- middle income to the category of  countries with a high-income of the population. 

"This year, three countries-Bulgaria, Palau, and Russia-moved from  the upper-middle-income to the high-income category: 

Bulgaria has been steadily approaching the high-income threshold with  modest growth throughout the post-pandemic recovery period, which  continued in 2023 as real GDP grew 1.8%, supported by consumption  demand. 

Palau also continued its post-pandemic recovery as GDP returned to  previous levels, growing by 0.4% in real terms. With inflation (as  measured by the GDP deflator) at 8.1%, nominal GNI increased 10.0%. 

Economic activity in Russia was influenced by a large increase in  military related activity in 2023, while growth was also boosted by a  rebound in trade (+6.8%), the financial sector (+8.7%), and  construction (+6.6%). These factors led to increases in both real  (3.6%) and nominal (10.9%) GDP, and Russia's Atlas GNI per capita  grew by 11.2%," the source notes.