Middle-Income Countries (MICs)

What is a middle-income country?

A middle-income country (MIC) is an economy whose gross national income (GNI) per capita falls between $1,136 and $13,845 (thresholds used by the World Bank for 2024). The World Bank divides MICs into two subgroups:
* Lower-middle-income: GNI per capita $1,136–$4,465
* Upper-middle-income: GNI per capita $4,466–$13,845

How the World Bank measures income groups

The World Bank classifies economies by GNI per capita in current U.S. dollars, using the Atlas method — a three‑year moving average of exchange rates — as its basis. GNI per capita is treated as a broad indicator of a country’s economic capacity and development for operational and analytical purposes.

Key characteristics of MICs

• Highly diverse: MICs include small island states and large economies (for example, Belize and the Marshall Islands as well as Brazil, China, and India).
• Wide-ranging challenges: Lower-middle-income countries often prioritize expanding basic services such as clean water and electricity. Upper-middle-income countries typically face governance issues like reducing corruption and strengthening institutions.
• Major share of people and activity: MICs account for a substantial share of the world’s population and economic output, making them central to global growth and stability.

Why MICs matter globally

Sustainable growth in MICs produces important spillovers:
* Poverty reduction and improved living standards
* Greater international financial stability
* Progress on global challenges such as climate change, energy transition, food and water security, and international trade

Movement between income groups

Countries move between income categories as their GNI per capita changes. These reclassifications reflect economic growth (or decline) and affect how international institutions engage and lend. Recent World Bank updates have identified several country transitions between low, lower-middle, upper-middle, and high-income brackets.

Examples

• China is classified as an upper-middle-income country.
• Other MIC examples include Turkey, Brazil, India, Russia, Argentina, Peru, Nigeria, Angola, Pakistan, and Iraq.
• The BRICS grouping (Brazil, Russia, India, China, South Africa) includes several MICs.

Bottom line

The World Bank’s income classifications—based on GNI per capita measured with the Atlas method—help summarize economic capacity and guide international policy and lending. Middle-income countries, spanning lower- and upper-middle tiers ($1,136–$13,845 per capita in 2024), are diverse but collectively pivotal to global economic growth and addressing worldwide challenges.