# Middle-Income Countries (MICs): Characteristics and Significance

> **Definition**
>
> A middle-income country) is defined by the World Bank as an economy with a gross national income per capita between $1,136 and $13,845 in 2024.

## What Is a Middle-Income Country? (MIC)

According to the World Bank, middle-income countries (MICs) are defined as economies with a [gross national income (GNI)](https://www.investopedia.com/terms/g/gross-national-income-gni.asp) per capita between $1,136 and $13,845 as of 2024. [MICs](https://www.worldbank.org/en/country/mic) consist of lower-middle-income countries and upper-middle-income countries, both of which are part of the income categories that the World Bank uses to classify economies for operational and analytical purposes.

### Key Takeaways

*   Middle-income countries are those with $1,136 and $13,845 in per capita GNI. 
*   The World Bank classifies countries for operational purposes for the financial and economic development services that it provides to them.
*   Middle-income countries make up a large share of the world's population and economic activity, and they are key to global economic growth.

## Understanding Middle-Income Countries (MICs)

The [World Bank](https://www.investopedia.com/terms/w/worldbank.asp) has historically classified every economy as low-, middle-, or high-income. It now further specifies countries as having low-, lower-middle-, upper-middle-, or high-income economies. The World Bank uses GNI per capita, in current U.S. dollars converted by the Atlas method of a three-year moving average of exchange rates, as the basis for this classification.

It views GNI as a broad measure and the single best indicator of economic capacity and progress. The World Bank used to refer to low-income and middle-income economies as developing economies; in 2016, it chose to drop the term from its vocabulary, citing a lack of specificity. Instead, the World Bank now refers to countries by their region, income, and lending status.

## MIC Characteristics

MICs are broken up into lower-middle-income and upper-middle-income economies. Lower-middle-income economies have per capita GNIs between $1,136 and $4,465, while upper-middle economies have per capita GNIs between $4,466 and $13,845.

MICs are a very diverse group by region, size, population, and income level, ranging from tiny nations with small populations, such as Belize and the Marshall Islands, to all five of the [BRICS](https://www.investopedia.com/terms/b/brics.asp) countries—Brazil, Russia, India, China, and South Africa. China and India together account for approximately one-third of the world's population and are increasingly influential players in the global economy.

The diverse nature of MICs means that the challenges facing many of them are quite different. For nations in the lower-middle-income category, the biggest issue might be providing their citizens with essential services, such as water and electricity. For the economies in the upper-middle-income category, the greatest challenges could be curbing corruption and improving governance.

## The Significance of MICs

MICs are essential for continued global [economic growth](https://www.investopedia.com/terms/e/economicgrowth.asp) and stability. According to the World Bank, sustainable growth and development in MICs have positive spillovers to the rest of the world. Examples are poverty reduction, international financial stability, and global cross-border issues, including climate change, sustainable energy development, food and water security, and international trade.

MICs have a combined population of five billion, or over 75% of the world's seven billion people, hosting 62% of the world's economically disadvantaged. Representing about one-third of global GDP, MICs are a major engine of global economic growth.

## Graduating From Lower- to Upper-Middle Income

Countries graduate from one level to another depending on their GNI per capita. According to a June 2023 report by the World Bank, India continued to be a lower-middle-income country and is expected to continue to be so in 2024.

Countries that will move from low-income to lower-middle-income country categories are Guinea and Zambia. Countries moving from lower-middle income to upper-middle income are Indonesia, El Salvador, West Bank and Gaza, and Jordan. Countries moving from upper-middle income to high income are Guyana and American Samoa.

## What Are the Income Levels of Countries?

The World Bank breaks down countries as a classification based on their gross national income (GNI) per capita. Its four main categories are low income, low-middle income, upper-middle income, and high income.

## What Countries Are Middle-Income Countries?

Countries that are middle-income countries include Turkey, Iraq, Russia, Brazil, Argentina, Peru, Nigeria, Angola, India, and Pakistan.

## Is China a Middle-Income Country?

Yes, China is considered a middle-income country. It is specifically an upper-middle-income country according to the World Bank.

## The Bottom Line

The World Bank classifies countries based on gross national income (GNI) per capita to better analyze these nations. Middle-income countries are those with a GNI per capita between $1,136 and $13,845. Middle-income countries can be further categorized as lower-middle income and upper-middle income.

> **Article Sources**
>
> 1.  The World Bank. "[World Bank Country and Lending Groups](https://datahelpdesk.worldbank.org/knowledgebase/articles/906519-world-bank-country-and-lending-groups)."
>     
> 2.  The World Bank. "[What Is the World Bank Atlas Method?](https://datahelpdesk.worldbank.org/knowledgebase/articles/77933-what-is-the-world-bank-atlas-method)."
>     
> 3.  The World Bank. "[World Development Indicators 2016](https://openknowledge.worldbank.org/server/api/core/bitstreams/3b645acd-5290-5892-9c1a-a7e1f8e70552/content)," Page iii.
>     
> 4.  The World Bank. "[Population, Total](https://data.worldbank.org/indicator/SP.POP.TOTL)."
>     
> 5.  The World Bank. “[The World Bank in Middle Income Countries: Strategy](https://www.worldbank.org/en/country/mic/overview#2).”
>     
> 6.  The World Bank. “[The World Bank in Middle Income Countries: Context](https://www.worldbank.org/en/country/mic/overview#1).”
>     
> 7.  The World Bank. "[World Bank Group Country Classifications by Income Level for FY24 (July 1, 2023 - June 30, 2024)](https://blogs.worldbank.org/opendata/new-world-bank-group-country-classifications-income-level-fy24)."
>     
> 8.  The World Bank. “[World Bank Country and Lending Groups](https://datahelpdesk.worldbank.org/knowledgebase/articles/906519-world-bank-country-and-lending-groups).”