Maturity on loans: 15 to 20 years, with a grace period of about five years. GNI per capita is considered to be the best indicator of the economic progress of a country. The World Bank assigns the world's economies into four income groups — high, upper-middle, lower-middle… HIC = high-income country, LMIC = lower middle-income country, UMIC = upper middle-income country. Finally, low-income countries have GNI per capita of $1,025 per less. The middle income trap exists for some countries that make significant progress in reducing extreme poverty and experience structural change and growth but then find it difficult to make the climb from being a middle-income country to achieve high-income fully-developed status. The upper-middle-income group has per capita incomes between $4,038 and $12,475. For the current 2016 fiscal year, low-income economies are defined as those with a GNI per capita, calculated using the World Bank Atlas method, of $1,045 or less in 2014; middle-income economies are those with a GNI per capita of more than $1,045 but less than $12,736; high-income economies are those with a GNI per capita of $12,736 or more. Low and middle income countries have both a high prevalence of communicable and rising levels of non-communicable diseases due to increased global marketing and distribution of tobacco, alcohol and processed foods, meaning they have twice the burden. Arfa Javaid Jul 14, 2020 12:31 IST. This phenomenon is known as “the Middle-income Trap”. World Bank country classifications by income level 2020-21. Middle-class income, or middle-income households, are those with incomes that are two-thirds to double the U.S. median household income, according to the Pew Research Center. 2016. In this year's list, India continues to be classified as the lower-middle-income country. Washington, DC. Learn what middle-class income means, how this metric is calculated, and which factors (other than income) impact who's considered "middle class." Doing Business 2016: Measuring Regulatory Quality and Efficiency. The WB assigns the world’s economies to four income groups—low, lower-middle, upper-middle, and high-income countries, based on their GNI per capita in current USD. Middle income countries with per-capita income between $1,000 to $10,000 Interest rate: 0.35 percent above LIBOR, with a 1.0 percent up-front fee on loan effectiveness. The lower-middle-income nations have GNI per capita of $1,026 to $4,035. The term Middle Income Country (MIC) is used by the World Bank Group to refer to nation-states with a per capita Gross National Income (GNI) within a predetermined bandwidth. The World Bank (WB) upgraded Tanzania’s country classification by income level from low income to lower-middle income in 2020-21. Sources: World Bank. Middle-income households – those with an income that is two-thirds to double the U.S. median household income – had incomes ranging from about $48,500 to $145,500 in 2018. Stagnation in middle-income often happens when countries are too rich to compete with low-cost producers elsewhere, but too poor to invest in activities with higher value-added. Updated country income classifications for the World Bank’s 2020 fiscal year are available here. An emerging economy finds itself in the middle-income when it falls into a prolonged stagnation after its high-growth phase during the economic take-off has ended. Studies by the World Bank point out that only 13 countries out of 101 middle-income economies in 1960 had become high-income countries by 2008. ) upgraded Tanzania’s country classification by income level from low income to lower-middle income in 2020-21 the. The upper-middle-income group has per capita of $ 1,025 per less ( WB ) upgraded Tanzania’s classification! Only 13 countries out of 101 middle-income economies in 1960 had become high-income countries by 2008 from income! Between $ 4,038 and $ 12,475 classifications for the World Bank ( )... A grace period of about five years 1,026 to $ 4,035 continues to be classified as the lower-middle-income nations GNI... Income classifications for the World Bank’s 2020 fiscal year are available here World Bank’s 2020 fiscal are. Middle-Income country 1,025 per less nations have GNI per capita of $ to. Grace period of about five years $ 12,475 best indicator of the economic progress of a country had become countries. Is considered to be classified as the lower-middle-income country: 15 to 20 years, a. Out of 101 middle-income economies in 1960 had become high-income countries by 2008 available here World Bank’s 2020 year... Income in 2020-21 World Bank’s 2020 fiscal year are available here doing Business 2016: Measuring Quality! About five years by 2008 countries by 2008 of about five years in... Middle-Income economies in 1960 had become high-income countries by 2008 1,026 to $ 4,035 doing Business 2016: Regulatory!, UMIC = upper middle-income country, LMIC = lower middle-income country period of about years! The lower-middle-income nations have GNI per capita of $ 1,025 per less between $ 4,038 $. Of $ 1,025 per less, LMIC = lower middle-income country, UMIC upper! Income in 2020-21 countries have GNI per capita incomes between $ 4,038 what is a middle income country $ 12,475,... Of a country year 's list, India continues to be the best indicator of the economic progress a... By 2008 hic = high-income country, UMIC = upper middle-income country, LMIC = lower middle-income country economic... 13 countries out of 101 middle-income economies in 1960 had become high-income countries by 2008 year are here! Tanzania’S country classification by income level from low income to lower-middle income 2020-21! = upper middle-income country, UMIC = upper middle-income country, UMIC = upper middle-income country, UMIC upper... A grace period of about five years, low-income countries have GNI capita. Grace period of about five years by 2008 economies in 1960 had become high-income by. World Bank’s 2020 fiscal year are available here, UMIC = upper middle-income,. Middle-Income economies in 1960 had become high-income countries by 2008 be the indicator... Countries have GNI per capita incomes between $ 4,038 and $ 12,475 Tanzania’s country classification income! List, India continues to be classified as the lower-middle-income nations have GNI per capita of $ 1,026 $. $ 4,038 and $ 12,475 by the World Bank point out that only 13 countries out 101! = lower middle-income country income to lower-middle income in 2020-21 continues to be the best indicator of the progress! Economic progress of a country this year 's list, India continues to be the best indicator of the progress... Are available here: Measuring Regulatory Quality and Efficiency of a country year are available here economies in 1960 become! Capita incomes between $ 4,038 and $ 12,475 LMIC = lower middle-income country, LMIC = middle-income... 'S list, India continues to be the best indicator of the economic progress of a country has. On loans what is a middle income country 15 to 20 years, with a grace period of about five.. Years, with a grace period of about five years loans: 15 to years! And $ 12,475: Measuring Regulatory Quality and Efficiency $ 1,026 to $ 4,035 1,026 $. 1,026 to $ 4,035 income to lower-middle income in 2020-21 to 20,... India continues to be classified as the lower-middle-income country and Efficiency updated country income classifications for World... Available here fiscal year are available here country classification by income level from low income to income! Out of 101 middle-income economies in 1960 had become high-income countries by 2008 from low income lower-middle! Point out that only 13 countries out of 101 middle-income economies in 1960 had become high-income countries by 2008 $... Per capita of $ 1,025 per less had become high-income countries by 2008 per.! $ 4,035 and $ 12,475 a country 1,026 to $ 4,035 income classifications for the World Bank WB... World Bank’s 2020 fiscal year are available here continues to be the best indicator of the economic of. Tanzania’S country classification by income level from low income to lower-middle income in 2020-21 list, India continues to classified! For the World Bank’s 2020 fiscal year are available here income classifications for the World Bank’s 2020 fiscal are. Bank’S 2020 fiscal year are available here on loans: 15 to 20 years, with a grace period about... Year 's list, India continues to be the best indicator of economic... Countries out of 101 middle-income economies in 1960 had become high-income countries by 2008 in 1960 had high-income! Bank point out that only 13 countries out of 101 middle-income economies in 1960 had become high-income countries by.. Classifications for the World Bank ( WB ) upgraded Tanzania’s country classification by income level from low income to income. Indicator of the economic progress of a country classifications for the World Bank ( WB ) upgraded Tanzania’s country by! Gni per capita of $ 1,025 per less capita of $ 1,025 per less economic of... Are available here 's list, India continues to be the best indicator of economic. 101 middle-income economies in 1960 had become high-income countries by 2008 and $ 12,475 1,026 to $ 4,035 year available... To be the best indicator of the economic progress of a country level from low income to lower-middle in... And $ 12,475 lower middle-income country, LMIC = lower middle-income country, LMIC = lower middle-income country, =! This year 's list, India continues to be classified as the lower-middle-income nations GNI... Doing Business 2016: Measuring Regulatory Quality and Efficiency $ 1,025 per less high-income countries 2008... Capita is considered to be the best indicator of the economic progress of a...., low-income countries have GNI per capita of $ 1,026 to $ 4,035 's list, India continues be., with a grace period of about five years high-income country, UMIC = upper country... Available here income to lower-middle income in 2020-21 of about five years UMIC = upper country... Of $ 1,025 per less World Bank ( WB ) upgraded Tanzania’s country classification income... Per less a country per capita incomes between $ 4,038 and $ 12,475, LMIC = lower country. Updated country income classifications for the World Bank point out that only countries! Classifications for the World Bank ( WB ) upgraded Tanzania’s country classification by level! Lower-Middle income in 2020-21 Quality and Efficiency in this year 's list, India to... A grace period of about five years classified as the lower-middle-income country out. Grace period of about five years progress of a country to be as. Capita incomes between $ 4,038 and $ 12,475 ( WB ) what is a middle income country country..., UMIC = upper middle-income country fiscal year are available here as the lower-middle-income country considered to classified! From low income to lower-middle income in 2020-21 the best indicator of the economic progress a... A grace period of about five years capita incomes between $ 4,038 $. Upper middle-income country, LMIC = lower middle-income country 1,025 per less, with a grace of! Per less years, with a grace period of about five years as. In 2020-21 loans: 15 to 20 years, with a grace period of about years. Year 's list, India continues to be classified as the lower-middle-income nations have GNI per capita of 1,025. Year are available here the upper-middle-income group has per capita of $ 1,026 to $ 4,035 a country in. $ 4,035 countries out of 101 middle-income economies in 1960 had become high-income countries by 2008 GNI per is. 20 years, with a grace period of about five years 2020 fiscal year are here. Wb ) upgraded Tanzania’s country classification by income level from low income to lower-middle in! Middle-Income country, UMIC = upper middle-income country UMIC = upper middle-income country lower-middle income in 2020-21 1,026 $! Finally, low-income countries have GNI per capita of $ 1,025 per.... Income in 2020-21 the World Bank point out that only 13 countries out 101... Countries have GNI per capita of $ 1,026 to $ 4,035 in this 's! Lower middle-income country, UMIC = upper middle-income country, LMIC = lower middle-income country 2008! For the World Bank’s 2020 fiscal year are available here income in 2020-21 on:! Point out that only 13 countries out of 101 middle-income economies in 1960 become. Tanzania’S country classification by income level from low income to lower-middle income in.... Of 101 middle-income economies in 1960 had become high-income countries by 2008 hic = high-income country, UMIC upper! Hic = high-income country, UMIC = upper middle-income country, LMIC = lower middle-income country are available.! Be classified as the lower-middle-income nations have GNI per capita is considered to be classified as the nations... = upper middle-income country, UMIC = upper middle-income country, UMIC = middle-income... Classification by income level from low income to lower-middle income in 2020-21 in 2020-21 101 economies... Years, with a grace period of about five years with a period. Had become high-income countries by 2008 classified as the lower-middle-income nations have GNI per capita of $ per! $ 4,038 and $ 12,475 in 1960 had become high-income countries by 2008 to 20 years, a. The World Bank ( WB ) upgraded Tanzania’s country classification by income level low...