World Bank upgrades Ukraine to upper-middle-income country category
Ukraine has been upgraded to an upper-middle-income country according to the World Bank's income classification for the 2024 fiscal year.
Source: World Bank
Details: The classification indicates Ukraine's income has been assessed by the bank at US$5,070 per capita, up from the previous US$4,270.
The World Bank categorises world economies into four income groups: low, lower-middle, upper-middle, and high.
Classifications are updated annually on 1 July, considering the gross national income (GNI) per capita for the previous calendar year. The World Bank's income classification aims to reflect a country's level of development, relying on GNI per capita as a widely available indicator of economic potential.
Ukraine's upgraded rating resulted from the recovery of economic growth in 2023 (real GDP increased by 5.3% after a 28.8% decline in 2022), along with a population decrease of more than 15% since the start of the Russian invasion.
In the meantime, Russia moved into the category of high-income countries. This was driven by significant growth in military activity, trade recovery (by 6.8%), the financial sector (by 8.7%), and the building sector (by 6.6%). These factors led to an increase in both real (3.6%) and nominal (10.9%) GDP, with Russia's GNI per capita rising by 11.2%.
Background:
- OLX Work researched how the average salary changed in the most in-demand sectors on the platform from December 2023 to May 2024.
- The median salary for developers increased by US$200 to US$3,500, primarily due to the rise in Tech Lead salaries.
- Real GDP in the first quarter of 2024 increased by 6.5% compared to the first quarter of the previous year.
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