Table of Contents
- What Is a Middle-Income Country? (MIC)
- Key Takeaways
- Understanding Middle-Income Countries (MICs)
- MIC Characteristics
- The Significance of MICs
- Graduating From Lower- to Upper-Middle Income
- What Are the Income Levels of Countries?
- What Countries Are Middle-Income Countries?
- Is China a Middle-Income Country?
- The Bottom Line
What Is a Middle-Income Country? (MIC)
Let me explain what a middle-income country, or MIC, really is. According to the World Bank, these are economies with a gross national income (GNI) per capita between $1,136 and $13,845 as of 2024. You should know that MICs include both lower-middle-income and upper-middle-income countries, which are part of the World Bank's income categories used for operational and analytical purposes.
Key Takeaways
Middle-income countries fall in the GNI per capita range of $1,136 to $13,845. The World Bank uses these classifications for its financial and economic development services. These countries account for a large portion of the world's population and economic activity, and they drive global economic growth.
Understanding Middle-Income Countries (MICs)
Historically, the World Bank classified economies as low-, middle-, or high-income, but now it specifies them as low-, lower-middle-, upper-middle-, or high-income. They base this on GNI per capita in current U.S. dollars, using the Atlas method with a three-year moving average of exchange rates. I see GNI as a broad measure and the best single indicator of economic capacity and progress. The World Bank dropped the term 'developing economies' in 2016 because it lacked specificity, and now refers to countries by region, income, and lending status.
MIC Characteristics
MICs split into lower-middle-income economies with GNI per capita from $1,136 to $4,465, and upper-middle-income ones from $4,466 to $13,845. These countries are diverse in region, size, population, and income, from small nations like Belize and the Marshall Islands to the BRICS group—Brazil, Russia, India, China, and South Africa. China and India alone make up about one-third of the world's population and are growing influences in the global economy. This diversity means challenges vary: lower-middle-income countries might focus on basic services like water and electricity, while upper-middle ones deal with corruption and governance.
The Significance of MICs
You need to understand that MICs are crucial for global economic growth and stability. The World Bank notes that their sustainable development spills over positively worldwide, in areas like poverty reduction, financial stability, and issues such as climate change, energy, food security, and trade. With a combined population of five billion—over 75% of the world's people—these countries host 62% of the economically disadvantaged and represent one-third of global GDP, making them a major engine of growth.
Graduating From Lower- to Upper-Middle Income
Countries move between levels based on GNI per capita changes. A June 2023 World Bank report shows India remains a lower-middle-income country into 2024. Examples include Guinea and Zambia moving from low- to lower-middle-income; Indonesia, El Salvador, West Bank and Gaza, and Jordan from lower- to upper-middle; and Guyana and American Samoa from upper-middle to high-income.
What Are the Income Levels of Countries?
The World Bank classifies countries by GNI per capita into four main categories: low income, lower-middle income, upper-middle income, and high income.
What Countries Are Middle-Income Countries?
Examples of middle-income countries include Turkey, Iraq, Russia, Brazil, Argentina, Peru, Nigeria, Angola, India, and Pakistan.
Is China a Middle-Income Country?
Yes, China is a middle-income country, specifically upper-middle-income per the World Bank.
The Bottom Line
The World Bank uses GNI per capita to classify countries for better analysis. Middle-income countries have GNI per capita between $1,136 and $13,845, further divided into lower-middle and upper-middle categories.
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