The World Bank’s latest income classification provides a snapshot of how economies around the world compare based on gross national income (GNI) per capita. The classification divides economies into four broad groups: low income, lower-middle income, upper-middle income and high income.

The map for 2025 shows a clear geographical pattern, with high-income economies concentrated largely across North America, Western Europe, parts of Asia and Oceania, while many lower-income economies remain concentrated in Africa and parts of Asia. However, countries can change categories as their incomes, exchange rates and population estimates change.

Four Income Categories

For the current World Bank classification covering July 2026 to June 2027, countries are grouped according to their 2025 GNI per capita using the Atlas method.

The thresholds are:

• Low income: $1,175 or less
• Lower-middle income: $1,176 to $4,635
• Upper-middle income: $4,636 to $14,375
• High income: More than $14,375

These categories are updated every year on July 1. As a result, the position of an economy can change from one classification year to another.

What Determines a Country’s Position?

The World Bank uses GNI per capita rather than GDP alone to determine the income groups. GNI measures income earned by residents, including income received from abroad, and is divided by the population to calculate GNI per capita.

The Atlas method is used to convert national income figures into U.S. dollars while reducing the influence of short-term exchange-rate fluctuations.

This means that a country’s classification does not depend simply on the size of its economy. Population, exchange rates and changes in national income statistics can all influence the final result.

Countries Can Move Between Groups

Income classification is not permanent. An economy can move upward when its GNI per capita rises above a threshold, while an economic crisis or other factors can potentially push it into a lower category.

Recent World Bank updates have demonstrated that such changes can result from genuine economic growth as well as revisions to national statistics and population estimates.

The classification therefore provides a changing picture of the global economy rather than a permanent ranking of countries.

High-Income Economies Remain Concentrated in Developed Regions

The map highlights the strong concentration of high-income economies in North America, Western Europe and parts of East Asia and the Pacific. Australia and New Zealand are also among the high-income economies shown on the map.

Meanwhile, much of sub-Saharan Africa remains within the low- or lower-middle-income categories, although the region contains economies at different stages of development.

Large parts of Latin America, Asia, North Africa and the Middle East fall into the upper-middle- or lower-middle-income groups.

Income Classification Is Not the Same as Living Standards

The World Bank cautions that income groups should not be interpreted as a complete measure of development. GNI per capita is an average and does not show how income is distributed among people within a country.

An economy can therefore be classified as middle- or high-income while still having substantial inequality or significant numbers of people living in poverty.

Other indicators, including health, education, poverty, infrastructure and access to essential services, are also important when assessing a country’s overall development.

A Changing Global Economic Landscape

The World Bank’s annual classification offers policymakers, researchers and businesses a standardized way to compare economies. Because the groups are updated each year, the map also captures long-term changes in the global distribution of income.

The latest classification is based on 2025 GNI per capita data and applies from July 1, 2026, through June 30, 2027.

The continuing movement of countries between income categories shows that the global economic landscape is constantly evolving. While the classification cannot capture every aspect of economic well-being, it remains an important reference point for understanding differences in income levels across the world.