The World Bank has reclassified Ukraine into the category of upper-middle-income countries, with the country’s income estimated at $5,070 per capita, censor.net reports.
This reclassification is reflected in the World Bank’s income level classification for the 2025 financial year, according to Forbes.
The World Bank divides the world’s economies into four income groups: low, lower-middle, upper-middle, and high.
The classification is updated annually on July 1, taking into account the gross national income (GNI) per capita for the previous calendar year.
The World Bank has released an infographic showing the economies transitioning to new income categories this year.
This year, Ukraine, Algeria, Iran, and Mongolia transitioned from the lower-middle-income category to the upper-middle-income category.
This upgrade for Ukraine resulted from the recovery of economic growth in 2023, with real GDP increasing by 5.3% after a 28.8% decline in 2022, and a population decrease of over 15% since the beginning of the Russian invasion.
According to the World Bank, these factors were further reinforced by rising prices for domestically produced goods and services, leading to a significant increase in nominal GNI per capita by 18.5%.
While Ukraine’s economy was severely weakened by the Russian invasion, real growth in 2023 was driven by construction activity (24.6%), reflecting a substantial increase in investment expenditures (52.9%), which support Ukraine’s recovery efforts after the destruction.
This year, three countries – Bulgaria, Palau, and Russia (with a per capita income of $14,250) – transitioned from the upper-middle-income category to the high-income category.
Economic activity in Russia was driven by a significant increase in military activity in 2023, the recovery of trade (6.8%), the financial sector (8.7%), and construction (6.6%).
These factors led to an increase in both real GDP (3.6%) and nominal GDP (10.9%), with Russia’s GNI per capita growing by 11.2%.
The World Bank forecasts a 3.2% growth in the Ukrainian economy in 2024.
Tags: Business economy Ukraine world bank
