For the first time in history, the World Bank transferred Ukraine to the category of countries with incomes higher than average, according to the published classification of countries by income level for the 2024 financial year.
Points of attention
- The increase in the incomes of Ukrainians took place despite the war that Russia started and is waging.
- The rise in the country's ranking was the result of a recovery in economic growth, which led to a 5.3% increase in GDP after a decline in the previous year.
- Russia moved into the category of countries with a high level of income against the background of the infusion of funds into the war.
Incomes of Ukrainians continue to grow despite the war started by the Russian Federation
According to the classification, the income of Ukrainian citizens was estimated by the bank at $5,070 per capita.
What is essential to understand is that the previously indicated indicator reached only $4,270.
World economies, according to the definition of the World Bank, are divided into four groups:
low level of income;
lower than average;
higher than average;
high.
In addition, it is emphasized that the classifications are updated every year on July 1, considering the gross national income (GNI) per capita for the previous calendar year.
The World Bank's income classification is aimed at reflecting the country's level of development, relying on GNI per capita as a widely available indicator of economic potential, the message says.
How Ukraine managed to make this leap
According to foreign analysts, Ukraine's rating increase was due to the recovery of economic growth last year.
What is important to understand is that real GDP grew by 5.3% after falling by 28.8% in 2022, alongside a shrinking population that has declined by more than 15% since the Russian invasion began.
It is also indicated that the aggressor country of the Russian Federation has entered the category of countries with a high-income level.
The main reasons are the rapid growth of military activity, the recovery of trade (by 6.8%), the financial sector (by 8.7%) and construction (by 6.6%). Experts note that all these factors provoked the growth of both natural (3.6%) and nominal (10.9%) GDP.
