New Delhi, August 16, 2026: The global economic landscape has undergone a significant transformation over the past four decades, with a growing number of countries moving into higher income categories, according to the World Bank’s long-running country income classification data.

The evolution is highlighted in a World Bank visualization comparing country income classifications across 1987, 1997, 2007, 2017 and 2025. The graphic divides economies into four broad groups—low income, lower-middle income, upper-middle income and high income—showing how the composition of the global economy has changed over time.

The World Bank updates these classifications every year on July 1. The system is based primarily on gross national income (GNI) per capita, calculated in U.S. dollars using the Atlas method.

Sharp Decline in the Share of Low-Income Economies

One of the clearest trends visible in the historical data is the reduction in the share of economies classified as low income.

In 1987, around 30% of reporting economies were categorized as low income. By 2024, that proportion had fallen to approximately 12%, while the share classified as high income had increased from about 25% to 40%.

The World Bank says these changes reflect decades of economic growth and structural transformation across different parts of the world. However, progress has not been uniform, and some regions have experienced much faster movement between income groups than others.

Asia Has Seen Major Economic Transformation

The evolution has been particularly striking across Asia.

According to World Bank historical comparisons, all South Asian countries were classified as low income in 1987. By 2024, only a small share remained in that category, with countries in the region having moved into lower-middle- or upper-middle-income classifications.

East Asia and the Pacific have also experienced a major shift. The share of countries in the region classified as low income declined from 26% in 1987 to only about 3% in 2024.

This broad movement reflects the rapid expansion of manufacturing, trade, investment, infrastructure and services across several Asian economies.

Latin America Also Moves Toward Higher Income Categories

Latin America and the Caribbean have recorded another notable change.

The World Bank’s historical data show that the share of high-income economies in the region increased from approximately 9% in 1987 to 46% in 2024. At the same time, the number of low-income economies fell to zero in the latest comparison.

The changes demonstrate that income classifications are not permanent labels. Countries can move between categories as their economies expand, contract or undergo statistical revisions.

Africa’s Progress Remains Uneven

The picture is more mixed in Sub-Saharan Africa.

The proportion of countries in the region classified as low income has declined substantially since the late 1980s, but the region continues to have a relatively large concentration of low-income economies. The World Bank reported that the share fell from about 75% in 1987 to 45% in 2024.

This illustrates an important feature of the global income map: economic progress has occurred, but the pace has varied considerably among countries.

Factors such as economic growth, population changes, inflation, exchange rates, investment and revisions to national economic statistics can all affect a country’s position.

How the World Bank Defines Income Groups

The World Bank currently uses four principal income categories:

• Low income
• Lower-middle income
• Upper-middle income
• High income

The classification is based on GNI per capita rather than total GDP. This distinction is important because a country can have a very large economy overall while still having a relatively low income per person.

The World Bank uses the Atlas method to convert national income figures into U.S. dollars. The classification thresholds are also adjusted annually for inflation.

The categories are primarily designed to help compare economies and organize global development statistics. They should not be interpreted as a complete assessment of a country’s overall development, living standards or quality of life.

Why Countries Change Income Categories

A country’s classification can change for several reasons.

Economic expansion can increase GNI per capita and push an economy toward a higher category. Conversely, economic downturns can reduce income per person.

Exchange-rate movements can also affect the dollar value of national income. Population changes are another important factor because the World Bank calculates income on a per-person basis.

In addition, improvements to national statistics can alter estimates. The World Bank therefore reviews and updates the classifications every year rather than treating them as permanent rankings.

The 2025 Map in Historical Perspective

The map shown in the accompanying graphic uses 2025 as its latest historical snapshot. It demonstrates how dramatically the global distribution of income groups has changed compared with 1987.

However, it is important to distinguish the 2025 map from the World Bank’s latest classification release. The World Bank published a new 2026–2027 classification on July 1, 2026, based on 2025 GNI per capita data. The latest release covers 218 economies, compared with 163 economies included in the classification exercise in 1987.

This means the 2025 panel in the graphic is best understood as part of a historical comparison rather than the current 2026–2027 classification.

A Changing Global Economic Order

The four-decade evolution of the World Bank’s income map offers a broad picture of how the global economy has changed.

The decline in the proportion of low-income economies and the growth of high- and middle-income groups point to significant improvements in income levels across many parts of the world. At the same time, the continued presence of low-income economies highlights the uneven nature of global development.

The changes also show why income classification should be viewed as a moving picture rather than a fixed ranking. Countries can progress, stagnate or move backward depending on economic conditions.

For policymakers, economists and researchers, these classifications provide a standardized framework for studying long-term changes in the world’s economies.

The World Bank’s latest data therefore underline a central feature of the global economy: the economic map of the world today looks very different from the one that existed in 1987, and it will continue to evolve as countries grow and their income levels change.