Which countries have low-income levels? The World Bank defines low-income countries as those with a GNI per capita of less than $1,026.
Final income divided by the population equals GNI per capita (formerly GNP per capita).
Its revenue is comprised of the value contributed by all local producers, product taxes not included in output valuation, and net foreign primary income receipts.
Using the World Bank Atlas approach, the GNI per capita is translated to current U.S. dollars and then divided by the half population to arrive at these figures.
It is based on official currency exchange for comparison between countries’ GNI. Based on averaging the exchange rates for the previous two years, the Atlas technique uses a conversion factor that considers inflation rates across countries in Europe, North America, Japan, and other regions.
To organize nations, the World Bank uses a classification system. A few years ago, there were 3 types: high, medium, and low-income nations. GNI per capita of at least $12,476 is the highest among the world’s wealthy.
A person in the upper-middle-income bracket has an annual salary of $4,038 to $12,475. Countries in the lower middle class have GNI per capita, ranging from $1,026 to $4,035. Finally, nations with a GNI per capita of USD 1,025 or less are considered low-income.
Developing nations, rising markets, and recently industrialized countries are all terms used to describe countries with low income.
Some of the nations mentioned below receive development assistance, which is financial help provided by governments or organizations to promote the growth of countries in the developing world.
Multilateral assistance is donated to an international body that distributes it to underdeveloped nations on the other side of the world. Development assistance is provided by institutions like the World Bank or United Nations agencies like UNICEF.
Low-income nations encounter difficulties due to a lack of resources. Life expectancy, infant mortality, educational performance, deteriorating infrastructure, environmental and climatic conditions, and health outcomes are linked to a country’s economic well-being.
These are all factors that contribute to a lower-than-average standard of living. Poor sanitation, lack of clean water, hunger, and a scarcity of adequate medical treatment contribute to the high prevalence of disease and infection in these low-income nations.
Also See: List of Tariffs by Country 2022
Except for Somalia (1990), Yemen (2018), & Eritrea (2018), all of the figures in the table below are from 2019. Currently, there are 24 nations in the “low-income” bracket. At $130 a year, Somalia has the lowest GDP per person globally.
|Country||GNI per capita*||2022 Population|
|Central African Republic||520||5016.6780|