New Economic Classification: Russia Joins the High-Income Club and Ukraine Rebounds from Invasion

Russia has been upgraded from an “upper-middle-income” to a “high-income” country by the World Bank, with per-capita gross national income (GNI) totaling $14,250 in 2023. The increase in military-related activity in 2023 significantly influenced economic activity in Russia, according to the international financial institution on Monday.

The growth in trade (+6.8%), the financial sector (+8.7%), and construction (+6.6%) were also major factors that contributed to Russia’s ascension to the high-income category. This resulted in increases in both real (3.6%) and nominal (11.2%) GDP, with Russia’s Atlas GNI per capita experiencing a significant growth of 11.2%.

The U.S.-based institution categorizes world economies into four groups based on per-capita GNI measures in U.S. dollars, and the World Bank’s 2024-25 classification for “high-income” countries increased the threshold to $14,005 or higher. In addition to Russia, Bulgaria and Palau also became “high-income economies” with $14,460 and $14,250 per-capita GNI, respectively.

In nominal terms, Russia ranks 72nd in per-capita GNI and 53rd in purchasing power parity despite facing a full-scale Russian invasion since 2022. On the other hand, Ukraine saw an improvement in its economic status after economic growth resumed in 2023, moving up from a “lower-middle