World Bank Elevates Ukraine to Above-Median Income Status

Ukraine has been elevated to the category of countries with incomes above the median for the first time by the World Bank. The country’s per capita income stands at $5,070.

This adjustment reflects Ukraine’s economic recovery in 2023, where real GDP grew by 5.3% following a 28.8% decline in 2022, attributed partly to population loss due to war. Factors contributing to this increase included rising domestic prices, significantly boosting nominal GDP per capita by 18.5%. Despite previous economic challenges, Ukraine’s 2023 growth was driven by construction activity (24.6%), fueled by a substantial increase in investment spending (52.9%).

The World Bank categorizes economies into four income groups annually, based on Gross National Income per capita. Ukraine’s advancement comes amidst similar upgrades for Bulgaria, Palau, and Russia, now classified as high-income countries. Russia’s economic resurgence was bolstered by heightened military activity and recovery in trade, finance, and construction sectors.

Additionally, Algeria, Iran, and Mongolia have also moved from lower-middle to upper-middle-income status alongside Ukraine. The classification changes reflect broader shifts globally, including an increase in high-income countries in Latin America and the Caribbean, contrasting with a slight decrease in Europe and Central Asia.

Previously, the World Bank noted that a third of Ukraine’s population lives below the poverty line.