Russia Rises to “High-Income” Status: How the World Bank’s Upgrade Was Achieved and What it Means for the Economy

In 2023, Russia was upgraded from an “upper-middle-income” to a “high-income” country by the World Bank. The upgrade was due to various factors such as increased economic activity resulting from military-related activities, growth in trade, financial sector, and construction.

According to the U.S.-based financial institution, Russia saw significant growth in its real and nominal GDP with a 11.2% increase in its Atlas GNI per capita. The World Bank categorizes world economies into four groups based on per-capita GNI with the threshold for “high-income” countries set at $14,005 or more. Along with Russia, Bulgaria and Palau also joined the ranks of “high-income economies” with per-capita GNI of $14,460 and $14,250 respectively.

In terms of rankings, Russia is placed 72nd in per-capita GNI and 53rd in purchasing power parity. Despite ongoing conflicts with neighboring Russia, Ukraine also saw an improvement in its economic status moving from a “lower-middle-income” to an “upper-middle-income” country after economic growth resumed in 2023 according to the World Bank.