Final answer:
The World Bank categorizes countries by GNI per capita, with middle-income economies split into lower and upper middle income. Lower middle income includes countries with GNI per capita between $1,036 and $4,045, whereas upper middle income ranges from $4,046 to $12,535. Economic growth is vital for bettering living standards and moving up the economic tiers.
Step-by-step explanation:
Understanding Middle-Income Countries According to the World Bank
The World Bank classifies nations into different economic categories such as low-income, middle-income, and high-income based on their Gross National Income (GNI) per capita. Middle-income countries are further divided into lower middle income and upper middle income categories. Lower middle income countries are those with a GNI per capita between $1,036 and $4,045, while upper middle income countries have a GNI per capita between $4,046 and $12,535. Countries like the Democratic Republic of Congo and the Philippines fall into the lower middle income group, whereas nations such as China and Mexico are classified as upper middle income states.
Low-income countries are defined by a GNI per capita of $1,035 or less, and they face significant challenges such as poverty, with a notable impact on women. The economic growth of these countries is a central concern, as it directly impacts the standard of living and the potential to move up the economic tier. Countries around the world, including middle-income ones, strive to attain higher income statuses and improve overall human welfare.