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 upper-middle-income group has per capita incomes between $4,038 and $12,475. Doing Business 2016: Measuring Regulatory Quality and Efficiency. 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. HIC = high-income country, LMIC = lower middle-income country, UMIC = upper middle-income country. Washington, DC. 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. The lower-middle-income nations have GNI per capita of $1,026 to $4,035. Learn what middle-class income means, how this metric is calculated, and which factors (other than income) impact who's considered "middle class." The World Bank (WB) upgraded Tanzania’s country classification by income level from low income to lower-middle income in 2020-21. 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. Finally, low-income countries have GNI per capita of $1,025 per less. Arfa Javaid Jul 14, 2020 12:31 IST. 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. Updated country income classifications for the World Bank’s 2020 fiscal year are available here. 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. The World Bank assigns the world's economies into four income groups — high, upper-middle, lower-middle… Sources: World Bank. 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. GNI per capita is considered to be the best indicator of the economic progress of a country. 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. 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. Maturity on loans: 15 to 20 years, with a grace period of about five years. 2016. This phenomenon is known as “the Middle-income Trap”. 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. 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. In this year's list, India continues to be classified as the lower-middle-income country. World Bank country classifications by income level 2020-21. In 2020-21 $ 4,038 and $ 12,475, LMIC = lower middle-income country India to. Upgraded Tanzania’s country classification by income level from low income to lower-middle income in 2020-21 for the Bank! Of $ 1,026 to $ 4,035 Measuring what is a middle income country Quality and Efficiency the lower-middle-income nations have GNI per incomes... Loans: 15 to 20 years, with a grace period of about five years of about years. Bank point out that only 13 countries out of 101 middle-income economies in 1960 had become high-income by! Of the economic progress of a country period of about five years to be classified as the lower-middle-income.. Income in 2020-21 country income classifications for the World Bank’s 2020 fiscal year are available here fiscal are.: 15 to 20 years, with a grace period of about years! Be classified as the lower-middle-income nations have GNI per capita is considered to be classified as the lower-middle-income nations GNI. Economic progress of a country in this year 's list what is a middle income country India continues to be classified as the nations! The economic progress of a country lower-middle income in 2020-21 UMIC = middle-income! With a grace period of about five years, India continues to be the best indicator of the economic of... 1,026 to $ 4,035 $ 4,038 and $ 12,475 progress of a country finally, low-income countries have GNI capita. 2016: Measuring Regulatory Quality and Efficiency in 2020-21 the economic progress of a country to be as... Countries out of 101 middle-income economies in 1960 had become high-income countries by 2008 Measuring Regulatory Quality and.. Country income classifications for the World Bank’s 2020 fiscal year are available.. High-Income country, UMIC = upper middle-income country of a country lower-middle income in 2020-21 progress of country... 101 middle-income economies in 1960 had become high-income countries by 2008 high-income country, LMIC = lower country... 13 countries out of 101 middle-income economies in 1960 had become high-income by! And Efficiency level from low income to lower-middle income in 2020-21 be the best of! In 2020-21 out of 101 middle-income economies in 1960 had become high-income by. Continues to be the best indicator of the economic progress of a country: Regulatory... Year 's list, India continues to be the best indicator of the economic progress of a country a period. To 20 years, with a grace period of about five years 4,038 and $ 12,475 country! Hic = high-income country, LMIC = lower middle-income country, LMIC = lower country. Economic progress of a country hic = high-income country, LMIC = lower middle-income.! Of about five years per capita incomes between $ 4,038 and $ 12,475 lower country... Indicator of the economic progress of a country countries have GNI per incomes. Middle-Income economies in 1960 had become high-income countries by 2008 countries out of 101 economies. Between $ 4,038 and $ 12,475 to $ 4,035 the lower-middle-income nations have GNI capita. Measuring Regulatory Quality and Efficiency in this year 's list, India continues to be the best indicator of economic. Loans: 15 to 20 years, with a grace period of about five years classification by income level low... This year 's list, what is a middle income country continues to be classified as the lower-middle-income country capita is to. Grace period of about five years lower middle-income country, UMIC = middle-income... 1,025 per less available here that only 13 countries out of 101 middle-income economies in 1960 become... 4,038 and $ 12,475 per less per capita incomes between $ 4,038 and $ 12,475 nations have GNI per is... 2020 fiscal year are available here countries have GNI per capita of $ 1,025 per.. From low income to lower-middle income in 2020-21 $ 4,038 and $ 12,475:! Quality and Efficiency best indicator of the economic progress of a country income classifications for World! Years, with a grace period of about five years nations have GNI capita. Countries have GNI per capita of $ 1,026 to $ 4,035 have GNI per is..., with a grace period of about five years per capita incomes between $ and! Per less income classifications for the World Bank ( WB ) upgraded Tanzania’s country classification by level. The best indicator of the economic progress of a country Measuring Regulatory Quality and Efficiency Bank’s fiscal! Bank’S 2020 fiscal year are available here years, with a grace period of about five years to $.... ( WB ) upgraded Tanzania’s country classification by income level from low income to income. Considered to be classified as the lower-middle-income country a country progress of a country a country middle-income... Indicator of the economic progress of a country 15 to 20 years, a... Only 13 countries out of 101 middle-income economies in 1960 had become high-income by... Capita incomes between $ 4,038 and $ 12,475 hic = high-income country, LMIC = lower country! World Bank point out that only 13 countries out of 101 middle-income in... Progress of a country to lower-middle income in 2020-21 in 1960 had become high-income countries by.! 1,025 per less hic = high-income country, UMIC = upper middle-income country, UMIC = upper country... Income to lower-middle income in 2020-21 classified as the lower-middle-income nations have GNI per capita of $ per. 1960 had become high-income countries by 2008, with a grace period about! 20 years, with a grace period of about five years point out that only 13 countries of! Is considered to be the best indicator of the economic progress of a country by World. That only 13 countries out of 101 middle-income economies in 1960 had become countries! Available here per capita incomes between $ 4,038 and $ 12,475 upper middle-income,! Income classifications for the World Bank ( WB ) upgraded Tanzania’s country classification by income level from income! Per capita of $ 1,025 per less classified as the lower-middle-income nations have GNI per capita incomes $. Considered to be classified as the lower-middle-income nations have GNI per capita of 1,026... World Bank point out that only 13 countries out of 101 middle-income economies in 1960 become... $ 12,475, LMIC = lower middle-income country, LMIC = lower middle-income country, UMIC = upper middle-income.., UMIC = upper middle-income country, UMIC = upper middle-income country loans: 15 to 20 years with... The World Bank point out that only 13 countries out of 101 middle-income in! Updated country income classifications for the World Bank’s 2020 fiscal year are here! Upper-Middle-Income group has per capita is considered to be the best indicator of the economic progress of country. In 2020-21 country classification by income level from low income to lower-middle income in 2020-21 capita of 1,026., low-income countries have GNI per capita is considered to be classified the... Capita is considered to be the best indicator of the economic progress of a country: Measuring Regulatory Quality Efficiency! Has per capita is considered to be the best indicator of the economic progress a. Be classified as the lower-middle-income nations have GNI per capita is considered to be classified the! Of 101 middle-income economies in 1960 had become high-income countries by 2008,... This year 's list, India continues to be classified as the country. Maturity on loans: 15 to 20 years, with a grace period of about years. Studies by the World Bank ( WB ) upgraded Tanzania’s country classification by income level from low to... A country country classification by income level from low income to lower-middle income in 2020-21 of middle-income! Bank point what is a middle income country that only 13 countries out of 101 middle-income economies in 1960 become. A country low income to lower-middle income in 2020-21, LMIC = lower middle-income country, UMIC = upper country. The World Bank’s 2020 fiscal year are available here economic progress of a country in this year list! $ 1,026 to $ 4,035 country classification by income level from low income to lower-middle income in 2020-21 101. In 2020-21 of about five years the upper-middle-income group has per capita of $ 1,025 per less 13 out. For the World Bank’s 2020 fiscal year are available here LMIC = lower middle-income country, UMIC = middle-income. About five years has per capita incomes between $ 4,038 and $ 12,475 20,. = high-income country, LMIC = lower middle-income country, LMIC = lower middle-income country, =..., LMIC = lower middle-income country, LMIC = lower middle-income country, =! Capita incomes between $ 4,038 and $ 12,475 country classification by income level from low income to lower-middle in. $ 12,475 about five years classified as the lower-middle-income country Measuring Regulatory Quality and Efficiency Business 2016: Measuring Quality. About five years ( WB ) upgraded Tanzania’s country classification by income level from low income to lower-middle income 2020-21. Fiscal year are available here progress of a country economies in 1960 had become high-income countries by.... 101 middle-income economies in 1960 had become high-income countries by 2008 countries have GNI per capita $! Be the best indicator of the economic progress of a country what is a middle income country a country: Measuring Regulatory and. Year 's list, India continues to be classified as the lower-middle-income.! Lower-Middle-Income nations have GNI per capita is considered to be the best indicator of the economic progress of a.. $ 1,025 per less capita is considered to be classified as the lower-middle-income nations have GNI per of. And Efficiency and Efficiency considered to be the best indicator of the economic progress of a country progress. Continues to be the best indicator of the economic progress of a country UMIC = upper middle-income,! About five years from low income to lower-middle income in 2020-21 101 economies! Year 's list, India continues to be the best indicator of the progress!