Six countries have moved into higher income categories in the latest World Bank Group classification, with five shifting from lower-middle to upper-middle income status and one moving from low to lower-middle income. The World Bank's Development Data Group confirmed that no country fell to a lower income category this year.
Countries Reclassified
Jordan, Micronesia, the Philippines, Sri Lanka, and Vietnam were reclassified as upper-middle-income economies. 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.
Drivers of Upgrades
Vietnam's upgrade was driven by strong export-led growth. Exports rose by more than 15 percent in both 2024 and 2025, while GDP grew by 7 percent and 8 percent during the two years. GNI grew at an average annual rate of 10 percent between 2021 and 2025, according to the World Bank.
The Philippines moved up after recording an average annual GDP growth of 5.8 percent 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 percent 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.
Statistical Revisions Play Key Role
The report noted that 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 percent larger than earlier estimates. Along with GDP growth of 2.8 percent 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 percent. The lower population increased per capita income, while GDP growth of 5.9 percent in 2025 and favorable exchange rate movements also supported the upgrade.
