Question

Under which income group do the countries with per capita income of US $ 1,035 or less per annum in 2021 come?​

Answer 1

Answer:

The World Bank assigns the world’s economies to four income groups—low, lower-middle, upper-middle, and high-income countries. The classifications are updated each year on July 1 and are based on GNI per capita in current USD (using the Atlas method exchange rates) of the previous year (i.e. 2020 in this case).

The classifications change for two reasons:

In each country, factors such as economic growth, inflation, exchange rates, and population growth influence GNI per capita. Revisions to national accounts methods and data can also have an influence in specific cases. The updated data on GNI per capita data for 2020 can be accessed here.

To keep the income classification thresholds fixed in real terms, they are adjusted annually for inflation. The Special Drawing Rights (SDR) deflator is used, which is a weighted average of the GDP deflators of China, Japan, the United Kingdom, the United States, and the Euro Area. This year, the thresholds moved up in line with this inflation measure. The new thresholds (for GNI per capita in current USD, Atlas method) are as follows: