The World Bank has moved Vietnam and the Philippines into the upper-middle income group as these countries have implemented the export-led growth model and broad-based expansion which reflects “an economy-wide shift.”
Growth due to gains across all major industries
According to the World Bank, Vietnam achieved development through an export-led growth strategy while the Philippines experienced broad-based expansion, “reflecting gains across all major industries, not a single sector boom, but an economy-wide shift.” The gross national income per capita of these countries reached $4,970 and $4,850 in 2025, respectively, both exceeding the World Bank’s $4,636 threshold for the upper-middle income group category. The economic progress has potentially strengthened investor confidence in both the countries.
All five major Southeast Asian economies, including Singapore, Malaysia and Thailand, are now at the upper-middle income tier and above, a release from the World Bank said on Wednesday. Vietnam had been in the lower-middle income since 2009 while the Philippines had remained there since the late 1980s, the data showed. Jordan, Micronesia and Sri Lanka also moved to the upper-middle income category while Togo was reclassified to lower-middle income from low income. The World Bank also said that the share of low-income economies has fallen to 11 percent from 30 percent since 1987.
Position of India
India continues to be classified as a lower-middle-income country, a category it has remained in since 2007. The World Bank estimates India’s Gross National Income or GNI per capita at around $2,500 to $2,700 which is well below the upper middle income threshold of $4,496.
World Bank’s classification of countries
The World Bank classifies economies into four income groups: high income, upper middle income, lower middle income and low income.
The rankings are based on Gross National Income or GNI per capita estimates from the previous calendar year. Countries with a GNI per capita between $1,136 and $4,495 are classified as lower-middle-income economies while those with incomes between $4,496 and $13,935 fall into the upper middle income category.
This year’s assessment covered 218 countries and will be used as the global reference until the end of June 2027. GNI measures the total income earned by a country’s people and businesses regardless of where that income is generated, unlike Gross Domestic Product or GDP which measures the value of goods and services produced within a country’s borders.
