Defining a “country” might seem straightforward at first glance. We often think of countries as distinct political entities with defined borders, governments, and populations. However, when we delve into the world of economics and global statistics, the definition becomes more nuanced. For organizations like the World Bank, the term “country” is used more as a statistical convenience, often referred to interchangeably as “economy,” and its definition broadens to encompass any territory for which authorities report separate social or economic data. This definition is crucial for categorizing and analyzing global economic development, and it’s the foundation for how the World Bank classifies economies based on income levels.
Defining a Country: Beyond Political Borders
The World Bank’s operational definition of a country moves beyond strict political independence. It focuses on practical terms for data collection and economic analysis. As stated by the World Bank, the term “country,” or “economy,” refers to “any territory for which authorities report separate social or economic statistics.” This inclusive definition allows for the incorporation of diverse territories, some of which may not be fully sovereign states in the traditional political sense, but are nonetheless significant economic entities.
This approach is essential for comprehensive global economic tracking. By focusing on territories that report distinct economic data, the World Bank can provide a detailed and nuanced picture of global economic conditions, development trends, and disparities. This data-driven approach is vital for informing policy decisions, guiding development aid, and understanding the interconnectedness of the global economy.
How the World Bank Classifies Economies by Income
The World Bank utilizes Gross National Income (GNI) per capita as the primary metric to classify economies into four income groups. This classification is updated annually and is based on the GNI per capita calculated using the World Bank Atlas method. The thresholds for each category are adjusted each year to reflect global inflation and economic changes. For the current 2025 fiscal year, the income classifications are as follows:
- Low-income economies: GNI per capita of $1,145 or less
- Lower-middle-income economies: GNI per capita between $1,146 and $4,515
- Upper-middle-income economies: GNI per capita between $4,516 and $14,005
- High-income economies: GNI per capita of $14,006 or more
These income classifications provide a valuable framework for understanding the economic landscape of different countries (or economies). It’s important to note that these are broad categories and there is significant diversity within each group. However, these classifications are instrumental for:
- International Development Assistance: Income classifications often determine eligibility for certain types of financial aid and concessional loans from international organizations like the World Bank and other development agencies.
- Economic Research and Analysis: Researchers and analysts use these classifications to study economic trends, compare development levels across countries, and understand the challenges and opportunities facing different income groups.
- Policy Formulation: Governments and international bodies use these classifications to inform policy decisions related to trade, investment, and development cooperation.
Detailed Lists of Economies by Region and Income
To provide a clearer picture, the World Bank publishes lists of economies categorized by both region and income level. Below are tables summarizing these classifications, offering a snapshot of the global economic distribution.
Economies by Region
| BY REGION |
|---|
| East Asia and Pacific |
| Europe and Central Asia |
| Latin America & the Caribbean |
| Middle East and North Africa |
| North America |
| South Asia |
| Sub-Saharan Africa |
Economies by Income
| BY INCOME |
|---|
| Low-income economies |
| Lower-middle-income economies |
| Upper-middle-income economies |
| High-income economies |
Economies by Lending Category
| BY LENDING |
|---|
| IDA |
| Blend |
| IBRD |
East Asia and Pacific
[38]
| American Samoa | Korea, Rep. | Papua New Guinea |
|---|---|---|
| Australia | Lao PDR | Philippines |
| Brunei Darussalam | Macao SAR, China | Samoa |
| Cambodia | Malaysia | Singapore |
| China | Marshall Islands | Solomon Islands |
| Fiji | Micronesia, Fed. Sts. | Taiwan, China |
| French Polynesia | Mongolia | Thailand |
| Guam | Myanmar | Timor-Leste |
| Hong Kong SAR, China | Nauru | Tonga |
| Indonesia | New Caledonia | Tuvalu |
| Japan | New Zealand | Vanuatu |
| Kiribati | Northern Mariana Islands | Vietnam |
| Korea, Dem. People’s Rep. | Palau |
Europe and Central Asia
[58]
| Albania | Gibraltar | Norway |
|---|---|---|
| Andorra | Greece | Poland |
| Armenia | Greenland | Portugal |
| Austria | Hungary | Romania |
| Azerbaijan | Iceland | Russian Federation |
| Belarus | Ireland | San Marino |
| Belgium | Isle of Man | Serbia |
| Bosnia and Herzegovina | Italy | Slovak Republic |
| Bulgaria | Kazakhstan | Slovenia |
| Channel Islands | Kosovo | Spain |
| Croatia | Kyrgyz Republic | Sweden |
| Cyprus | Latvia | Switzerland |
| Czechia | Liechtenstein | Tajikistan |
| Denmark | Lithuania | Türkiye |
| Estonia | Luxembourg | Turkmenistan |
| Faroe Islands | Moldova | Ukraine |
| Finland | Monaco | United Kingdom |
| France | Montenegro | Uzbekistan |
| Georgia | Netherlands | |
| Germany | North Macedonia |
Latin America and the Caribbean
[42]
| Antigua and Barbuda | Curacao | Paraguay |
|---|---|---|
| Argentina | Dominica | Peru |
| Aruba | Dominican Republic | Puerto Rico |
| Bahamas, The | Ecuador | Sint Maarten (Dutch part) |
| Barbados | El Salvador | St. Kitts and Nevis |
| Belize | Grenada | St. Lucia |
| Bolivia | Guatemala | St. Martin (French part) |
| Brazil | Guyana | St. Vincent and the Grenadines |
| British Virgin Islands | Haiti | Suriname |
| Cayman Islands | Honduras | Trinidad and Tobago |
| Chile | Jamaica | Turks and Caicos Islands |
| Colombia | Mexico | Uruguay |
| Costa Rica | Nicaragua | Venezuela, RB |
| Cuba | Panama | Virgin Islands (U.S.) |
Middle East and North Africa
[21]
| Algeria | Jordan | Qatar |
|---|---|---|
| Bahrain | Kuwait | Saudi Arabia |
| Djibouti | Lebanon | Syrian Arab Republic |
| Egypt, Arab Rep. | Libya | Tunisia |
| Iran, Islamic Rep. | Malta | United Arab Emirates |
| Iraq | Morocco | West Bank and Gaza |
| Israel | Oman | Yemen, Rep. |
North America
[3]
| Bermuda | Canada | United States |
|---|
South Asia
[8]
| Afghanistan | India | Pakistan |
|---|---|---|
| Bangladesh | Maldives | Sri Lanka |
| Bhutan | Nepal |
Sub-Saharan Africa
[48]
| Angola | Ethiopia | Niger |
|---|---|---|
| Benin | Gabon | Nigeria |
| Botswana | Gambia, The | Rwanda |
| Burkina Faso | Ghana | São Tomé and Principe |
| Burundi | Guinea | Senegal |
| Cabo Verde | Guinea-Bissau | Seychelles |
| Cameroon | Kenya | Sierra Leone |
| Central African Republic | Lesotho | Somalia |
| Chad | Liberia | South Africa |
| Comoros | Madagascar | South Sudan |
| Congo, Dem. Rep. | Malawi | Sudan |
| Congo, Rep | Mali | Tanzania |
| Côte d’Ivoire | Mauritania | Togo |
| Equatorial Guinea | Mauritius | Uganda |
| Eritrea | Mozambique | Zambia |
| Eswatini | Namibia | Zimbabwe |
Low-Income Economies ($1,145 or less)
[26]
| Afghanistan | Korea, Dem. People’s Rep | South Sudan |
|---|---|---|
| Burkina Faso | Liberia | Sudan |
| Burundi | Madagascar | Syrian Arab Republic |
| Central African Republic | Malawi | Togo |
| Chad | Mali | Uganda |
| Congo, Dem. Rep | Mozambique | Yemen, Rep. |
| Eritrea | Niger | |
| Ethiopia | Rwanda | |
| Gambia, The | Sierra Leone | |
| Guinea-Bissau | Somalia |
Lower-Middle Income Economies ($1,146 to $4,515)
[51]
| Angola | Honduras | Papua New Guinea |
|---|---|---|
| Bangladesh | India | Philippines |
| Benin | Jordan | Samoa |
| Bhutan | Kenya | São Tomé and Principe |
| Bolivia | Kiribati | Senegal |
| Cabo Verde | Kyrgyz Republic | Solomon Islands |
| Cambodia | Lao PDR | Sri Lanka |
| Cameroon | Lebanon | Tajikistan |
| Comoros | Lesotho | Tanzania |
| Congo, Rep. | Mauritania | Timor-Leste |
| Côte d’Ivoire | Micronesia, Fed. Sts. | Tunisia |
| Djibouti | Morocco | Uzbekistan |
| Egypt, Arab Rep. | Myanmar | Vanuatu |
| Eswatini | Nepal | Vietnam |
| Ghana | Nicaragua | West Bank and Gaza |
| Guinea | Nigeria | Zambia |
| Haiti | Pakistan | Zimbabwe |
Upper-Middle-Income Economies ($4,516 to $14,005)
[54]
| Albania | Equatorial Guinea | Moldova |
|---|---|---|
| Algeria | Fiji | Mongolia |
| Argentina | Gabon | Montenegro |
| Armenia | Georgia | Namibia |
| Azerbaijan | Grenada | North Macedonia |
| Belarus | Guatemala | Paraguay |
| Belize | Indonesia | Peru |
| Bosnia and Herzegovina | Iran, Islamic Rep. | Serbia |
| Botswana | Iraq | South Africa |
| Brazil | Jamaica | St. Lucia |
| China | Kazakhstan | St. Vincent and the Grenadines |
| Colombia | Kosovo | Suriname |
| Costa Rica | Libya | Thailand |
| Cuba | Malaysia | Tonga |
| Dominica | Maldives | Türkiye |
| Dominican Republic | Marshall Islands | Turkmenistan |
| Ecuador | Mauritius | Tuvalu |
| El Salvador | Mexico | Ukraine |
High-Income Economies ($14,006 or more)
[86]
| American Samoa | Gibraltar | Palau |
|---|---|---|
| Andorra | Greece | Panama |
| Antigua and Barbuda | Greenland | Poland |
| Aruba | Guam | Portugal |
| Australia | Guyana | Puerto Rico |
| Austria | Hong Kong SAR, China | Qatar |
| Bahamas, The | Hungary | Romania |
| Bahrain | Iceland | Russian Federation |
| Barbados | Ireland | San Marino |
| Belgium | Isle of Man | Saudi Arabia |
| Bermuda | Israel | Seychelles |
| British Virgin Islands | Italy | Singapore |
| Brunei Darussalam | Japan | Sint Maarten (Dutch part) |
| Bulgaria | Korea, Rep. | Slovak Republic |
| Canada | Kuwait | Slovenia |
| Cayman Islands | Latvia | Spain |
| Channel Islands | Liechtenstein | St. Kitts and Nevis |
| Chile | Lithuania | St. Martin (French part) |
| Croatia | Luxembourg | Sweden |
| Curaçao | Macao SAR, China | Switzerland |
| Cyprus | Malta | Taiwan, China |
| Czechia | Monaco | Trinidad and Tobago |
| Denmark | Nauru | Turks and Caicos Islands |
| Estonia | Netherlands | United Arab Emirates |
| Faroe Islands | New Caledonia | United Kingdom |
| Finland | New Zealand | United States |
| France | Northern Mariana Islands | Uruguay |
| French Polynesia | Norway | Virgin Islands (U.S.) |
| Germany | Oman |
IDA (International Development Association)
[60]
| Afghanistan | Haiti | Rwanda |
|---|---|---|
| Bangladesh | Honduras | Samoa |
| Benin | Kiribati | São Tomé and Principe |
| Bhutan | Kosovo | Senegal |
| Burkina Faso | Kyrgyz Republic | Sierra Leone |
| Burundi | Lao PDR | Solomon Islands |
| Cambodia | Lesotho | Somalia |
| Central African Republic | Liberia | South Sudan |
| Chad | Madagascar | Sri Lanka |
| Comoros | Malawi | Sudan |
| Congo, Dem. Rep. | Maldives | Syrian Arab Republic |
| Côte d’Ivoire | Mali | Tajikistan |
| Djibouti | Marshall Islands | Tanzania |
| Eritrea | Mauritania | Togo |
| Ethiopia | Micronesia, Fed. Sts. | Tonga |
| Gambia, The | Mozambique | Tuvalu |
| Ghana | Myanmar | Uganda |
| Guinea | Nepal | Vanuatu |
| Guinea-Bissau | Nicaragua | Yemen, Rep. |
| Guyana | Niger | Zambia |
Blend
[17]
| Belize | Fiji | St. Lucia |
|---|---|---|
| Cabo Verde | Grenada | St. Vincent and the Grenadines |
| Cameroon | Kenya | Timor-Leste |
| Congo, Rep. | Nigeria | Uzbekistan |
| Dominica | Pakistan | Zimbabwe |
| Eswatini | Papua New Guinea |
IBRD (International Bank for Reconstruction and Development)
[68]
| Albania | Equatorial Guinea | Palau |
|---|---|---|
| Algeria | Gabon | Panama |
| Angola | Georgia | Paraguay |
| Antigua and Barbuda | Guatemala | Peru |
| Argentina | India | Philippines |
| Armenia | Indonesia | Poland |
| Azerbaijan | Iran, Islamic Rep. | Romania |
| Barbados | Iraq | Russian Federation |
| Belarus | Jamaica | Serbia |
| Bolivia | Jordan | Seychelles |
| Bosnia and Herzegovina | Kazakhstan | South Africa |
| Botswana | Lebanon | St. Kitts and Nevis |
| Brazil | Libya | Suriname |
| Bulgaria | Malaysia | Thailand |
| Chile | Mauritius | Trinidad and Tobago |
| China | Mexico | Tunisia |
| Colombia | Moldova | Türkiye |
| Costa Rica | Mongolia | Turkmenistan |
| Croatia | Montenegro | Ukraine |
| Dominican Republic | Morocco | Uruguay |
| Ecuador | Namibia | Venezuela, RB |
| Egypt, Arab Rep. | Nauru | Vietnam |
| El Salvador | North Macedonia |
Note: It is important to remember that the classification of economies is dynamic. Countries can move between income categories as their economies grow or contract. Bold text in the original data indicates a change in classification from the previous year, highlighting the fluid nature of global economic development. Furthermore, Venezuela, RB, previously classified as upper-middle income, has been unclassified due to data unavailability, reminding us of the challenges in collecting and maintaining consistent global economic data.
The Importance of Understanding Country Classifications
Understanding how the World Bank classifies countries, or economies, is more than just an academic exercise. It has real-world implications for:
- Global Development Policy: These classifications shape the strategies and priorities of international development organizations.
- Investment Decisions: Investors often use income classifications as indicators of risk and potential in different markets.
- Trade Relations: Trade agreements and policies can be influenced by a country’s income level.
- Global Awareness: For individuals, understanding these classifications provides a framework for comprehending global economic disparities and development challenges.
In conclusion, while the question “What Is A Country?” might seem simple, the World Bank’s approach reveals a more complex and data-driven definition for the purpose of economic analysis. By classifying economies based on GNI per capita and providing detailed regional and income-based lists, the World Bank offers invaluable tools for understanding and navigating the intricacies of the global economic landscape. This framework is essential for policymakers, researchers, businesses, and anyone seeking to grasp the dynamics of our interconnected world.
