World Bank: Algeria Among the “Upper Middle-Income Countries”
The World Bank has classified Algeria among the list of “upper-middle-income countries,” according to a report for 2025 that will be officially released on Monday.
According to a statement by the Ministry of Finance, which copy was received by Echorouk, the World Bank will, on Monday, July 1, 2024, publish its new update to the annual economic ranking of member states on the occasion of the beginning of the new fiscal year, which extends from July 1 to June 30 of each year.
This classification takes into account the data recorded during the last year based on the development of the gross national income (GNI) per capita, by considering factors such as economic growth, inflation, exchange rates, and population growth that affect the gross national income per capita. It can also occasionally affect review methods and data for national accounts.
The ranking is also affected by adjustments to the rating thresholds since to maintain fixed thresholds for real income, they are adjusted for inflation using the Special Drawing Rights (SDR) factor.
In this context, the World Bank raised Algeria’s rating for 2025, in line with the International Monetary Fund and recognised the validity of the statistics resulting from the efforts made by Algeria to reflect an accurate picture of the Algerian economy.
Based on this new update, Algeria will move from the category of “lower middle-income countries” to “upper middle-income countries.”
According to the criteria set by the World Bank for 2024, countries are classified based on low-income economies, which include those with a GNI per capita of $1,135 or less, and lower-middle-income economies, which represent those with a GNI per capita between $1,136 and $4,465, and upper-middle-income economies which are those with GNI per capita between $4,466 and $13,845.
The classification also includes high-income economies with a gross national income per capita of $13,846 or more.
Algeria witnessed an increase in the GNI per capita from US$3,900 (between July 1, 2022 and June 30, 2023) to US$4,960 between July 1, 2023 and June 30, 2024.
The main reason behind this increase in our country’s rating is the complete review of national statistics through re-evaluation, conducted by the National Bureau of Statistics to bring it into line with current international standards (SNA2008).
This change reflects taking into account not only the process of re-evaluating the gross domestic product, through an upward review of the level of the gross domestic product with an average increase of 13.3% during the period 2018-2022 but also includes other factors such as the results achieved in recent years in the areas of growth and expanding general investment, strengthening productive economic sectors, promoting good governance of public finances, progress in improving methods of measuring and producing statistical data in public administration, and better coverage of the unobserved economy.
