Nepal has officially graduated to a ‘lower-middle-income’ country from a ‘low-income’ country, according to the World Bank.
The multilateral development partner – in its latest country classifications by income level report published yesterday – also claimed that the report has, however, taken account of the income classifications through the use of GNI of 2019, which does not reflect the impact of Covid-19.
The World Bank updates the classifications – annually on July 1 – on the basis of gross national income (GNI) per capita. Nepal witnessed GNI per capita rise to $1,090 in 2019, from $960 in 2018, surpassing the $1,036 threshold for lower-middle-income countries in 2020.
According to the World Bank, countries with GNI per capita from $1,036 to $12,535 fall in the category of middle income category, which has further been sub-categorised as lower-middle income ($1,036 to $4,045) and upper-middle income ($4,046 to $12,535) countries. Likewise, countries with GNI per capita of over $12,535 are considered high income, according to the World Bank, which assigns the global economies to three income groups; low, middle, and high-income countries. The countries with GNI per capita of below $1,036 are considered low income.
According to the World Bank, the economies are categorised on the basis of economic growth, inflation, exchange rates, and population growth influence GNI per capita. GNI is the total amount of money earned by the country. GNI is also used to measure the country’s wealth. The income includes the country’s gross domestic product (GDP) and the earnings it received from overseas sources including remittance.
Since the classification is based on GNI of 2019, the GNI per capita may reduce in 2020 and Nepal might again fall into the lower income country status, due to coronavirus that has halted the economic activities hurting also the remittance, apart from gross domestic product (GDP).
Nepal has, however, aimed at graduating to the middle-income country status by 2022.
The multilateral development partner – in its latest country classifications by income level report published yesterday – also claimed that the report has, however, taken account of the income classifications through the use of GNI of 2019, which does not reflect the impact of Covid-19.
The World Bank updates the classifications – annually on July 1 – on the basis of gross national income (GNI) per capita. Nepal witnessed GNI per capita rise to $1,090 in 2019, from $960 in 2018, surpassing the $1,036 threshold for lower-middle-income countries in 2020.
According to the World Bank, countries with GNI per capita from $1,036 to $12,535 fall in the category of middle income category, which has further been sub-categorised as lower-middle income ($1,036 to $4,045) and upper-middle income ($4,046 to $12,535) countries. Likewise, countries with GNI per capita of over $12,535 are considered high income, according to the World Bank, which assigns the global economies to three income groups; low, middle, and high-income countries. The countries with GNI per capita of below $1,036 are considered low income.
According to the World Bank, the economies are categorised on the basis of economic growth, inflation, exchange rates, and population growth influence GNI per capita. GNI is the total amount of money earned by the country. GNI is also used to measure the country’s wealth. The income includes the country’s gross domestic product (GDP) and the earnings it received from overseas sources including remittance.
Since the classification is based on GNI of 2019, the GNI per capita may reduce in 2020 and Nepal might again fall into the lower income country status, due to coronavirus that has halted the economic activities hurting also the remittance, apart from gross domestic product (GDP).
Nepal has, however, aimed at graduating to the middle-income country status by 2022.
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