Russia’s Economic Boost: From Upper-Middle Income to High-Income Nation

The World Bank has upgraded Russia to a “high-income” country with a per-capita gross national income (GNI) of $14,250 in 2023. This is a significant change from its previous classification as an “upper-middle-income” nation. The upgrade was attributed to various factors, including increased economic activity due to military-related activities, growth in trade, the financial sector, and construction.

Russia’s growth in real and nominal GDP, with a significant 11.2% increase in its Atlas GNI per capita, was also cited as contributing to this upgrade. 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