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World Bank upgrades Algeria’s positioning for 2025
Annual classification of economies
The World Bank (WB) has just revised Algeria’s positioning upwards for the year 2025, thus aligning itself with the IMF and recognizing the accuracy of the statistical results resulting from the efforts made by our country to give a true picture of the Algerian economy. “Under the new update of the annual classification of economies, carried out by the World Bank (WB), Algeria will move from a Lower Middle Income country to a “Upper Middle Income” country, indicated, the day before yesterday Sunday, a press release from the Ministry of Finance.
According to the update of the annual classification of the economies of the WB member countries, made public yesterday Monday, July 1 on the occasion of the start of its next fiscal year, which runs from July 1 to June 30 of each year, Algeria, the same source said, has seen its Gross National Income (GNI) per capita increase from USD 3,900 (between July 1, 2022 and June 30, 2023), to USD 4,960 (between July 1, 2023 and June 30, 2024).
This classification, notes the same source, takes into account the data recorded during the past year on the basis of the evolution of the GNI per capita, taking into account factors such as economic growth, inflation, exchange rates and population growth affecting the GNI per capita.
Clarifying that revisions to national accounting methods and data can also sometimes have an impact. “This classification also takes into account changes in classification thresholds,” the same source continued, noting that in order to maintain the classification thresholds for fixed income in real terms, they are adjusted for inflation using the Special Drawing Rights (SDR) deflator.
The main factor contributing to the improvement of our country’s ranking, observes the same source, is the complete revision of national accounts statistics, undertaken by the National Statistics Office (ONS), with the aim of aligning with current international standards (SNA2008).
“This realignment reflects the consideration, not only of the GDP rebasing operation, by an upward revision of the GDP level (on average 13.3% more over the period 2018-2022, but also of other factors such as the results recorded in recent years in terms of growth, in the expansion of public investment and the consolidation of productive economic sectors, the strengthening of good governance of public finances, progress in improving methods of measurement and production of statistical data in public administration and better coverage of the non-observed economy”, notes the Ministry of Finance in its press release. And to recall that according to the scale set by the WB, for the 2024 financial year, the economies of the countries are classified into 4 categories. Of which, added the same source, Low Income Economies, defined as those whose GNI per capita is USD 1,135, Middle Income Economies with a Slice Lower, i.e. those with a GNI per capita of between USD 1,136 and USD 4,465; Upper Middle Income Economies, i.e. those with a GNI per capita of between USD 4,466 and USD 13,845; and finally High Income Economies, those with a GNI per capita of between USD 13,846 and above.
Rabah Mokhtari