science

High-income economy

High-income economy is a science topic covered in the lgStudy science library. This page brings together a partial reference excerpt, illustrations, worked examples, real-world applications and a short study plan, so you can understand High-income economy rather than just read about it. In short: A high-income economy is defined as a country or territory with a gross national income (GNI) per capita, calculated using the World Bank's Atlas method, exceeding the annual threshold, which for the fiscal year 2027 (based on 2025 data) is $14,375. As of the 2026 classification, approximately 87 economies fall into this category, including major industrialized nations such as the United States, Germany, and Japan…

Key takeaways

High-income economy belongs to science; place it in that map before memorising details.
Learn the definition first, then one example that makes the definition concrete.
Connect High-income economy to a quantity you can measure, compute or draw — that is where exam questions come from.
Reproduce the core statement of High-income economy from memory before moving on to harder problems.

Reference excerpt

A high-income economy is defined as a country or territory with a gross national income (GNI) per capita, calculated using the World Bank's Atlas method, exceeding the annual threshold, which for the fiscal year 2027 (based on 2025 data) is $14,375. As of the 2026 classification, approximately 87 economies fall into this category, including major industrialized nations such as the United States, Germany, and Japan, alongside smaller entities such as Andorra, Bahrain, and certain Caribbean islands reliant on tourism or resource exports. Several institutions, such as the Central Intelligence Agency (CIA) or International Monetary Fund (IMF), take factors other than high per capita income into account when classifying countries as "developed" or "advanced economies". According to the United Nations, for example, some high-income countries may also be developing countries. The GCC countries, for example, are classified as developing high-income countries. Thus, a high-income country may be classified as either developed or developing. Although Vatican City is a sovereign state, it is not classified by the World Bank under this definition.

List of high-income economies (for 2027 fiscal year) According to the World Bank the following 87 countries (including territories) are classified as "high-income economies". In brackets are the year(s) during which they held such classification; classifying began in 1987. As of the 2027 fiscal year, high-income economies are those that had a GNI per capita of $14,375 or more in 2025.

High income UN members

High income non-UN members

Former high-income economies The year(s) during which they held such classification is/are shown in parentheses.

a Between 1994 and 2009, as a part of the Netherlands Antilles. b Dissolved on 10 October 2010. Succeeded by Curaçao and Sint Maarten.

Historical thresholds The high-income threshold was originally set in 1989 at US$6,000 in 1987 prices. Thresholds for subsequent years were adjusted taking into account the average inflation in the G-5 countries (the United States, the United Kingdom, Japan, Germany, and France), and from 2001, that of Japan, the United Kingdom, the United States, and the eurozone. Thus, the thresholds remain constant in real terms over time. To ensure no country falls right on the threshold, country data are rounded to the nearest 10 and income thresholds are rounded to the nearest 5. The following table shows the high-income threshold from 1987 onwards. Countries with a GNI per capita (calculated using the Atlas method) above this threshold are classified by the World Bank as "high-income economies".

Illustrations

Worked examples

Example 1 — a first encounter with High-income economy

Start with the simplest possible case. Write down what High-income economy claims or describes in one sentence, then invent the smallest concrete situation in which that sentence is true. In science, the smallest case is usually a single object, a single equation or a single measurement. Check that every symbol or term in your sentence has a meaning in that case.

Example 2 — changing one variable

Take the situation from Example 1 and change exactly one quantity: double it, halve it, or set it to zero. Predict what should happen to High-income economy before you calculate. Comparing your prediction with the result is the fastest way to find out whether you understand the idea or only the words.

Example 3 — an exam-style question

Typical questions about High-income economy ask you to (a) state it precisely, (b) apply it to given data, and (c) explain a limitation. Practise writing all three answers in under five minutes; the third part is what separates a full-mark answer from an average one.

Applications of High-income economy

In research: High-income economy appears in science research whenever the underlying quantities have to be modelled precisely. Papers usually cite it as a starting assumption and then explore where it breaks down.
In technology and industry: Engineering practice reuses High-income economy in design rules, simulations and safety margins. Knowing the idea lets you read a specification sheet and understand why the numbers look the way they do.
In the classroom: High-income economy is common in secondary-school and first-year university syllabi. It links to neighbouring topics Economic country classifications, Politics by region, so understanding it makes those chapters shorter.
In everyday life: Look for High-income economy outside the textbook — in sport, cooking, traffic, electronics or the sky above you. An example you found yourself is remembered far longer than one you were given.

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How to study High-income economy in 20 minutes

Read the reference excerpt below once, without taking notes.
Close the page and write down what High-income economy means in your own words.
Compare your version with the excerpt and mark what you missed.
Work through the three examples above with pen and paper.
Explain High-income economy out loud to somebody else — or to Teacher Smith in the lgStudy chat.

Frequently asked questions

What is High-income economy in simple terms?

Why does High-income economy matter?

Because it connects several science ideas at once: it gives you a definition you can apply, a quantity you can calculate, and a way to check whether a result is plausible.

How should I study High-income economy?

Read the excerpt, restate it from memory, then work through the examples and applications listed on this page. The five-step study plan above takes about twenty minutes.

What does this page cover?

It gives you a compact reference excerpt plus original lgStudy explanations, examples, applications and study material on High-income economy.