• Fri. Jul 5th, 2024

Russia’s Economic Ascension: From Lower-Income to High-Income Country, Despite Conflict in the Region

BySamantha Jones

Jul 3, 2024
Russia Promoted to ‘High-Income’ Status by World Bank

Russia has been upgraded to a “high-income” country by the World Bank, with per-capita gross national income (GNI) totaling $14,250 in 2023. Economic activity in Russia was significantly influenced by a large increase in military-related activity in 2023, as stated by the international financial institution on Monday.

According to the U.S.-based institution, Russia’s ascension to the high-income category was also attributed to growth in trade (+6.8%), the financial sector (+8.7%), and construction (+6.6%), which resulted in increases in both real (3.6%) and nominal (10.9%) GDP, with Russia’s Atlas GNI per capita experiencing an 11.2% growth.

The World Bank has revised its classification for “high-income” countries to have a per-capita GNI of $14,005 or higher for the 2024-25 period. In addition to Russia, Bulgaria and Palau also became “high-income economies” with $14,460 and $14,250 per-capita GNI, respectively.

In nominal terms, Russia ranks 72nd in per-capita GNI and 53rd in purchasing power parity despite facing a full-scale Russian invasion since 2022. On the other hand, Ukraine saw an improvement in its economic status after economic growth resumed in 2023 and was moved up from a “lower-middle-income” to an “upper-middle

By Samantha Jones

As a content writer at newsnnk.com, I weave words into captivating stories that inform and engage our readers. With a passion for storytelling and an eye for detail, I strive to deliver high-quality and engaging content that resonates with our audience. From breaking news to thought-provoking features, I am dedicated to providing informative and compelling articles that keep our readers informed and entertained. Join me on this journey as we explore the world through the power of words.

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