Learn what middle-class income means, how this metric is calculated, and which factors (other than income) impact who's considered "middle class." An emerging economy finds itself in the middle-income when it falls into a prolonged stagnation after its high-growth phase during the economic take-off has ended. GNI per capita is considered to be the best indicator of the economic progress of a country. The term Middle Income Country (MIC) is used by the World Bank Group to refer to nation-states with a per capita Gross National Income (GNI) within a predetermined bandwidth. Stagnation in middle-income often happens when countries are too rich to compete with low-cost producers elsewhere, but too poor to invest in activities with higher value-added. HIC = high-income country, LMIC = lower middle-income country, UMIC = upper middle-income country. Doing Business 2016: Measuring Regulatory Quality and Efficiency. The WB assigns the world’s economies to four income groups—low, lower-middle, upper-middle, and high-income countries, based on their GNI per capita in current USD. In this year's list, India continues to be classified as the lower-middle-income country. Middle-income households – those with an income that is two-thirds to double the U.S. median household income – had incomes ranging from about $48,500 to $145,500 in 2018. Middle income countries with per-capita income between $1,000 to $10,000 Interest rate: 0.35 percent above LIBOR, with a 1.0 percent up-front fee on loan effectiveness. The World Bank (WB) upgraded Tanzania’s country classification by income level from low income to lower-middle income in 2020-21. The upper-middle-income group has per capita incomes between $4,038 and $12,475. Finally, low-income countries have GNI per capita of $1,025 per less. Washington, DC. World Bank country classifications by income level 2020-21. Studies by the World Bank point out that only 13 countries out of 101 middle-income economies in 1960 had become high-income countries by 2008. Low and middle income countries have both a high prevalence of communicable and rising levels of non-communicable diseases due to increased global marketing and distribution of tobacco, alcohol and processed foods, meaning they have twice the burden. The lower-middle-income nations have GNI per capita of $1,026 to $4,035. Arfa Javaid Jul 14, 2020 12:31 IST. Middle-class income, or middle-income households, are those with incomes that are two-thirds to double the U.S. median household income, according to the Pew Research Center. This phenomenon is known as “the Middle-income Trap”. The World Bank assigns the world's economies into four income groups — high, upper-middle, lower-middle… Maturity on loans: 15 to 20 years, with a grace period of about five years. 2016. For the current 2016 fiscal year, low-income economies are defined as those with a GNI per capita, calculated using the World Bank Atlas method, of $1,045 or less in 2014; middle-income economies are those with a GNI per capita of more than $1,045 but less than $12,736; high-income economies are those with a GNI per capita of $12,736 or more. Updated country income classifications for the World Bank’s 2020 fiscal year are available here. Sources: World Bank. The middle income trap exists for some countries that make significant progress in reducing extreme poverty and experience structural change and growth but then find it difficult to make the climb from being a middle-income country to achieve high-income fully-developed status. Lower-Middle-Income nations have GNI per capita of $ 1,025 per less, LMIC = lower middle-income country, =. Wb ) upgraded Tanzania’s country classification by income level from low income lower-middle... 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