uppermiddleincome

Upper middle income is a term used by the World Bank to classify economies based on gross national income (GNI) per capita. It falls between lower-middle-income and high-income categories. The World Bank updates the thresholds annually; as of the most recent classifications, economies with a GNI per capita (Atlas method, current US$) roughly between $4,000 and $13,000 are designated upper-middle-income. The exact bounds are adjusted each year for inflation and exchange rate effects.

Purpose and uses of the designation include statistical grouping to guide policy analysis and eligibility for programs and concessional financing. The classification helps researchers compare development outcomes and allows institutions to target programs by income level. Note that upper-middle-income refers to average income per person in the national economy and does not convey the distribution of income, poverty, or human development within the country.

Transition and limitations: Countries can move into or out of the category due to real GDP growth, currency movements, or price changes used in the GNI calculation. The thresholds are inherently arbitrary and can miss within-country disparities; thus researchers and policymakers often complement the classification with other indicators such as the Human Development Index or poverty measures.

See also: World Bank income classifications.