By A Staff Reporter
Kathmandu, July 4: Nepal has moved up to the ‘lower-middle income’ status from ‘low income’ country for the first time in history.
A report of World Bank ‘Country classification by income level’ has announced the upgrade of the country’s status the other day.
According to the report, Nepal’s per capita income was US$1,090 last year up from $960 in 2018. In 2017, the PCI of Nepalis was $860 and in 2016 only $770.
Maldives tops the South Asian region with $9,650 PCI.
It is the only middle-high income country in the region. However, Sri Lanka’s PCI dropped to $4,020 from $4060 in 2018.
The World Bank had set a threshold of $1,035 PCI for the countries to climb up from ‘lower-income’ to ‘lower-middle income’ economies. Categories include low-income, lower-middle income, high-middle income and high-income with the PCI threshold of below $1035, $1035 to $4045, $4046 to $1200 and above $1200.
Nepal is in the lower-middle group with other 50 countries while 56 nations are in high-middle income and 83 in high-income club.
The WB said that it has taken account of the income classifications through the use of GNI of 2019 till July 1, which does not yet reflect the impact of COVID-19.
GDP growth rate of the country was 8.2 per cent, 6.7 per cent and 7 per cent in last three consecutive years respectively. The rapid economic growth had contributed to the increase in per capita income of Nepalis.
PCI means the gross national income (GNI) divided by the population of the country.