World Bank upgrades Ukraine to upper-middle income category

MOSCOW. July 3 (Interfax) - The World Bank has transferred Ukraine from the lower-middle income category to the upper-middle income category.

"Ukraine's upward change in classification resulted from a resumption of economic growth in 2023 (real GDP grew 5.3%, following a drop of 28.8% in 2022) along with a continued decline in population, which has fallen more than 15%," Ukrainian media quoted the World Bank as saying in a statement.

These factors were further amplified by price increases of domestically produced goods and services to result in a large increase in nominal Atlas gross national income (GNI) per capita of 18.5%, it said.

While Ukraine's economy was significantly impaired by the crisis, "real growth in 2023 was driven by construction activity (24.6%), reflecting a sizable increase in investment spending (52.9%) supporting Ukraine's reconstruction effort in the wake of ongoing destruction," the World Bank said.

Income per capital in Ukraine grew from $4,270 in 2023 to $5,070 in 2024, it said.

Algeria, Iran and Mongolia were also upgraded to the upper-middle income category along with Ukraine, the World Bank said.

Meanwhile, Bulgaria, Palau and Russia were moved from the upper-middle income category to the high-income category.