This upgrade comes as Ukraine's income per capita increased to $5,070, up from the previous figure of $4,270.
Key Factors for Reclassification:
- Economic Recovery in 2023:
- Ukraine's real GDP grew by 5.3% in 2023, following a significant decline of 28.8% in 2022.
- Population Decline:
- A long-term decline in the population, which has decreased by more than 15% since the Russian invasion, contributed to the reclassification.
- Increase in GNI per Capita:
- The rise in prices of domestically produced goods and services led to an 18.5% increase in nominal gross national income (GNI) per capita.
World Bank Classification:
The World Bank categorizes world economies into four income groups based on GNI per capita:
- Low income
- Lower-middle income
- Upper-middle income
- High income
These classifications are updated annually on July 1 based on the previous year's data. The classification serves as an indicator of a country's economic development and potential.
Significance of the Reclassification:
- Economic Development:
- This reclassification reflects Ukraine's improving economic conditions and development potential.
- International Perception:
- Being classified as a higher-income country can positively influence international investment and economic partnerships.
