World Bank Upgrades Zim To Lower-Middle-Income
The World Bank has released an updated country income classifications for the World Bank’s 2020 fiscal year. Zimbabwe has been upgraded from lower to lower-middle-income class.
President Emmerson Mnangagwa earlier said that the target of his administration was to reach the middle-income class by 2030
The World Bank classifies the world’s economies into four income groups namely, high, upper-middle, lower-middle, and low. These classifications are based on Gross National Income (GNI) per capita (current US$) calculated using the Atlas method. The classification is updated each year on July 1st.
The classification of countries is determined by two factors:
- A country’s GNI per capita, which can change with economic growth, inflation, exchange rates, and population. Revisions to national accounts methods and data can also influence GNI per capita.
- Classification threshold: The thresholds are adjusted for inflation annually using the SDR deflator.
The following countries are assigned to new income groups:
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Zimbabwe is among the three African countries the World Bank upgraded 3 African countries from ‘low income’ status to ‘lower middle income’ status. The other two are Senegal and Comoros. The World Bank reports that Zimbabwe’s GNI per Capita per US$ increased from 910 between 2017 and July 1, 2018, to 1790 between 2018 and July 1, 2019.
Whilst Gregory Smith, a former Senior Economist in the World Bank’s Global Practice for Macroeconomics and Fiscal Management has said that the elevation of Zimbabwe is surprising, others congratulated Zimbabwe for the ‘milestone’ achieved.
Others claimed that the World Bank, like all economists and banks, is not in touch with reality on the ground.
More: World Bank
