Diverse growth paths lift six countries into higher income groups: World Bank

The World Bank's Development Data Group said no country moved to a lower income category in its latest annual classification.

Jordan, Micronesia, the Philippines, Sri Lanka and Vietnam were reclassified as upper-middle-income economies, while Togo moved from the low-income to the lower-middle-income category.

The classification is based on Gross National Income (GNI) per capita estimates for the previous calendar year, using the Atlas method to reduce the impact of short-term exchange rate fluctuations.

Vietnam's upgrade was driven by strong export-led growth. Exports rose by more than 15 per cent in both 2024 and 2025, while GDP grew by 7 per cent and 8 per cent during the two years. GNI grew at an average annual rate of 10 per cent between 2021 and 2025.

The Philippines moved up after recording an average annual GDP growth of 5.8 per cent over the past five years.

Sri Lanka returned to the upper-middle income category after recovering from its 2022 economic crisis. Its economy grew by 5 per cent in 2025, supported by gains in tourism, financial services and industry.

Micronesia registered steady growth as construction and agriculture supported its post-pandemic recovery, although lower net primary income limited overall gains.

The report said statistical revisions, rather than economic changes, led to the reclassification of Jordan and Togo.

Jordan's upgrade followed a revision of its national accounts, which showed the economy was nearly 10 per cent larger than earlier estimates. Along with GDP growth of 2.8 per cent in 2025, this helped the country cross the income threshold.

Togo's reclassification followed a revision of population data after the 2022 census lowered the country's population estimate by 11.7 per cent. The lower population increased per capita income, while GDP growth of 5.9 per cent in 2025 and favourable exchange rate movements also supported the upgrade. (ANI)