Definitions of groups

For operational and analytical purposes, the World Bank’s main criterion for classifying economies is gross national product (GNP) per capita. Every economy is classified as low income, middle income (subdivided into lower middle and upper middle), or high income. Other analytical groups, based on geographic regions, exports, and levels of external debt, are also used.

Low-income and middle-income economies are sometimes referred to as developing economies. The use of the term is convenient; it is not intended to imply that all economies in the group are experiencing similar development or that other economies have reached a preferred or final stage of development. Classification by income does not necessarily reflect development status.

Definitions of groups

These tables classify all World Bank member countries (181), and all other economies with populations of more than 30,000 (210 total).

Income group: Economies are divided according to 1996 GNP per capita, calculated using the World Bank Atlas method. The groups are: low income, $785 or less; lower middle income, $786- $3,115; upper middle income, $3,116- $9,635; and high income, $9,636 or more.

Indebtedness: Standard World Bank definitions of severe and moderate indebtedness are used to classify economies in this table. Severely indebted means either of the two key ratios is above critical levels: present value of debt service to GNP (80 percent) and present value of debt service to exports (220 percent). Moderately indebted means either of the two key ratios exceeds 60 percent of, but does not reach, the critical levels. For economies that do not report detailed debt statistics to the World Bank Debtor Reporting System (DRS), present-value calculation is not possible. Instead, the following methodology is used to classify the non-DRS economies. Severely indebted means three of four key ratios (averaged over 1994- 96) are above critical levels: debt to GNP (50 percent); debt to exports (275 percent); debt service to exports (30 percent); and interest to exports (20 percent). Moderately indebted means three of the four key ratios exceed 60 percent of, but do not reach, the critical levels. All other classified low- and middle-income economies are listed as less-indebted.

East Asia and Pacific
Europe and Central Asia
Latin America and the Caribbean
Middle East and North Africa
South Asia
Sub-Saharan Africa
Low-income economies
Lower-middle-income economies
Upper-middle-income economies
High-income economies
High-income OECD members
Severely indebted
Moderately indebted
Less indebted
Not classified by indebtedness

East Asia and Pacific (developing only: 22)

Europe and Central Asia (developing only: 30)

Latin America and the Caribbean (developing only: 34)

Middle East and North Africa (developing only: 15)

South Asia (8)

Sub-Saharan Africa (developing only: 49)

Low-income economies (63)

Lower-middle-income economies (63)

Upper-middle-income economies (32)

High-income economies (52)

High-income OECD members ( 24)

Severely indebted (52)

Moderately indebted (29)

Less indebted (68)

Not classified by indebtedness (61)

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