World Bank high-income economy facts for kids
A high-income economy is a country or territory that the World Bank says has a lot of money earned by its people. In 2019, this meant a country's average income per person, called gross national income (GNI) per capita, was US$12,536 or more. The World Bank uses a special way to calculate this, called the Atlas method.
Sometimes, people use "high-income" to mean the same as "First World" or "developed country". But these terms aren't exactly the same. For example, "First World" used to mean countries that were friends with the U.S. and NATO during the Cold War. Other groups like the Central Intelligence Agency (CIA) or International Monetary Fund (IMF) look at more than just income to decide if a country is "developed." Even the United Nations says some high-income countries can still be developing. Countries like those in the GCC are examples of high-income countries that are still developing. So, a high-income country can be either developed or developing. The Vatican City is a country, but the World Bank doesn't put it in this group.
Contents
What is a High-Income Economy?
A high-income economy is a place where people generally earn a lot of money. The World Bank decides which countries fit this description. They look at the average income per person, which is called gross national income (GNI) per capita. If this average income is above a certain amount, the country is called a high-income economy.
How Countries Are Classified
The World Bank updates its list of high-income economies every year. For the 2021 financial year, countries needed to have a GNI per person of at least $12,535 in 2019 to be on the list. This helps us understand which countries have strong economies.
Countries with High Incomes (2021)
As of 2021, there are 80 countries and territories that the World Bank calls "high-income economies." The years in brackets show when they have been on this list.
High-Income UN Member Countries
These are countries that are part of the United Nations and have high incomes.
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High-Income Non-UN Members
These are territories or states that are not full members of the United Nations but still have high incomes.
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a Between 1994 and 2009, these were part of the 
Netherlands Antilles.
Former High-Income Economies
These countries used to be on the high-income list but are not anymore. The years in brackets show when they were considered high-income.
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b The Netherlands Antilles split up on October 10, 2010. It was replaced by Curaçao and Sint Maarten.
How the Income Level Changes Over Time
The World Bank first set the high-income level at US$6,000 in 1987. This number changes each year to keep up with inflation. Inflation means that money buys less over time. So, the World Bank adjusts the income level based on how prices change in some of the world's biggest economies, like the United States, the United Kingdom, Japan, Germany, and France. This makes sure the income level stays fair over many years.
See also
In Spanish: Países de ingresos altos para niños
