The global income landscape has transformed dramatically over the past 25 years. Countries that were once considered low income have climbed into middle-income status, while others have secured a place among high-income nations. This shift is reshaping the global economy, with developing nations catching up to the wealthier parts of the world.
The Current State of Global Income Levels
According to the World Bank, global income levels are classified based on gross national income (GNI) per capita. GNI includes all income earned by a country’s residents and businesses, both domestically and abroad. Here’s how countries are grouped in 2025 based on 2023 data:
Low income: Less than $1,145 per capita – 11.9% of countries
Lower middle income: $1,146 to $4,515 – 23.4% of countries
Upper middle income: $4,516 to $14,005 – 25.2% of countries
High income: Over $14,005 – 39.4% of countries
The map below created by Visual CapitalistThe World by Income Group in 2025.
In 2000, 30.7% of the world’s countries were classified as low income. That figure has dropped to just 11.9% today. Meanwhile, the share of high-income countries has risen from 25.4% in 2000 to 39.4% in 2025.
How Major Countries Have Climbed the Economic Ladder
China’s economic rise is one of the most remarkable stories of the last few decades. In 1999, China was still classified as a low-income country. By 2010, it had transitioned to upper middle-income status, where it remains today. This transformation was driven by rapid industrialization, export growth, and massive infrastructure investments.
India’s progress has followed a similar pattern. Once a low-income country, India is now a middle-income nation thanks to rapid economic growth and a booming technology sector.
Other notable success stories include:
South Korea – Overcame the ‘middle-income trap’ by specializing in key industries like electronics and shipbuilding.
Chile and Uruguay – Benefited from a commodities boom and rising GDP per capita in the 2000s. Chile remains the world’s largest copper producer and the second-largest producer of lithium (source).
Eastern Europe – Hungary, Poland, Czechia, and Slovakia have transitioned to high-income status, supported by market reforms and integration into the European Union.
Regional Breakdown of Income Levels
When looking at income classification from a regional perspective, we see distinct patterns:
Region
Share of High-Income Countries
Share of Upper Middle-Income Countries
Share of Lower Middle-Income Countries
Share of Low-Income Countries
Number of Countries
North America
100%
0%
0%
0%
3
Europe & Central Asia
69%
26%
5%
0%
58
Latin America & Caribbean
43%
48%
10%
0%
42
East Asia & Pacific
42%
24%
32%
3%
38
Middle East & North Africa
38%
19%
33%
10%
21
Sub-Saharan Africa
2%
13%
40%
46%
48
South Asia
0%
13%
75%
13%
8
Oil-rich nations in the Middle East, such as Qatar, Saudi Arabia, and the UAE, have some of the highest GDP per capita levels in the world. Saudi Arabia recently became the region’s first trillion-dollar economy, fueled by massive oil reserves and government-backed initiatives.
How Global Income Distribution Could Look by 2040
A second chart from Gapminder illustrates how the distribution of income could shift by 2040 if current trends continue.
In 2017, the majority of the world’s population was clustered in the $2–$8/day income range (Level 2). By 2040, most people are expected to move into higher income levels:
Income Level
Definition
2017 Population (Billions)
2040 Projection (Billions)
Level 1
Less than $2/day
0.8
0.5
Level 2
$2–$8/day
3.7
2.6
Level 3
$8–$32/day
2.0
4.2
Level 4
More than $32/day
0.8
1.7
Notably, Africa is expected to experience the most dramatic improvement. In 2017, most Africans were living in Level 2. By 2040, around 600 million Africans are projected to move into Level 3 ($8–$32/day).
What This Means for the Future
This shift reflects a slow but steady reduction in global poverty and an expansion of the middle class. Industrialization, technological advancements, and improved access to education and healthcare are helping drive this trend.
However, challenges remain. Political instability, environmental changes, and uneven economic development could disrupt this progress. Still, the long-term trend points toward greater global prosperity and a narrowing gap between wealthy and developing nations.
