Submission statement: The World Bank has just updated its classification of country economies by income level, with 8 countries being reclassified. Of note are that 7 countries have now been reclassified into a higher income bracket, which includes both Russia and Ukraine, while West Bank and Gaza are the only economies to have been reclassified downward.
Analysis of each country that has been reclassified reveals some interesting trends on top of post-COVID recovery. For Russia and Ukraine in particular, the data appears to reflect that war can be “good for business”, as added government spending translates into economic & income growth. Russia’s classification as a high income economy is further driven by increased financial sector activity and trade despite Western sanctions.
Additionally, the article compares country classifications over time since 1987 as well as regional shifts, to point out long term changes in the global economy, as well as highlight how regions can behave differently. While the world has overall trended towards higher income, on a country or regional level, this may not be the case.
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Submission statement: The World Bank has just updated its classification of country economies by income level, with 8 countries being reclassified. Of note are that 7 countries have now been reclassified into a higher income bracket, which includes both Russia and Ukraine, while West Bank and Gaza are the only economies to have been reclassified downward.
Analysis of each country that has been reclassified reveals some interesting trends on top of post-COVID recovery. For Russia and Ukraine in particular, the data appears to reflect that war can be “good for business”, as added government spending translates into economic & income growth. Russia’s classification as a high income economy is further driven by increased financial sector activity and trade despite Western sanctions.
Additionally, the article compares country classifications over time since 1987 as well as regional shifts, to point out long term changes in the global economy, as well as highlight how regions can behave differently. While the world has overall trended towards higher income, on a country or regional level, this may not be the case.