Country Income Status: World Bank unveils new classifications for 2019

As the second quarter of 2018 closed in June, the World Bank has released the reclassification of  some economies, considering Gross National Income per capita with the application of Atlas method. The International Financial body notes that the change has become imperative because “In each country, factors such as income growth, inflation, exchange rates, and population change, influence GNI per capita.”

According to the institution, the new classification will keep the dollar thresholds which separate the classifications fixed in real terms. “We adjust them for inflation,” the body stressed.

In the new classification, Syrian Arab Republic, Tajikistan and Yemen become lower income economies. Armenia and Guatemala become upper middle income economies while Argentina, Croatia and Panama move to high middle income economies.

Majority of the 48 sub-Saharan countries maintained their previous positions. They will remain  under low-income and lower middle income economies for the next fiscal year.  Algeria Botswana, Equatorial Guinea, Gabon, Libya, Namibia and South Africa are some of the continent’s countries that remain under upper middle income classification. Nigeria, Egypt, Djibouti, Angola, Cabo Verde, Cameroon and others maintain their lower middle income economies classification. Benin Republic, The Gambia, Senegal and others remain low-income economies.