High-Income Countries World Bank Ranking for 2024: Romania Secures Spot Again
Romania has regained its status as a high-income country, as announced by the World Bank in 2024. This significant achievement comes after the nation was temporarily downgraded in 2020 due to the economic impact of the COVID-19 pandemic.
In 2019, Romania entered the high-income group with a gross national income (GNI) per capita of USD 12,610, just above the threshold at that time (USD 12,535). However, the pandemic caused the nation's economy to shrink by 4% in 2020, and the World Bank raised the income threshold slightly to USD 12,696. As a result, Romania's GNI per capita dipped below this new threshold, causing it to be reclassified as an upper-middle-income country.
The post-pandemic recovery saw Romania's economy bounce back, with the GNI per capita reaching USD 16,690 in 2023 and further increasing to USD 17,600 by the end of 2024. This surpassed the World Bank's 2024 high-income threshold of USD 13,935, enabling Romania to rejoin and maintain its status among high-income countries.
It is worth noting that Romania was the only EU country to be downgraded in 2020, but all EU countries except Bulgaria are now classified as high-income economies according to the World Bank. The recovery and surpassing of the income threshold explain Romania's return to the high-income ranking.
The World Bank is the source that classified Romania as a high-income country. To be part of this group, a country needs to have a GNI per capita of at least USD 13,935 last year. Romania's situation was not exceptional in 2020, as all EU states were affected by the pandemic, leading to a decrease in GNI per capita for all member states.
This news marks a significant milestone for Romania's economic growth and resilience in the face of the pandemic. The country's successful recovery and re-inclusion in the high-income group demonstrate the strength of Romania's economy and its ability to bounce back from challenging circumstances.
[1] World Bank, World Development Indicators. Data retrieved on March 31, 2023. [3] World Bank, Romania Country Profile. Data retrieved on March 31, 2023.
Romania's economic resilience allowed it to surpass the World Bank's high-income threshold of USD 13,935, which enabled the country to rejoin and maintain its status among high-income countries, demonstrating the strength of its business and finance sectors.
The successful recovery and post-pandemic growth of Romania's economy has been fueled by its robust business environment and effective financial management.
