Algeria retains upper-middle-income status in latest World Bank classification
Algeria has retained its upper-middle-income status for a third consecutive year in the World Bank’s latest income classification, reflecting higher gross national income per capita and sustained improvements in the country’s economic indicators.
BY Dr. Hana Saada
ALGIERS — Algeria has maintained its position among the world’s upper-middle-income economies for a third consecutive year, according to the latest annual classification published by the World Bank, underscoring continued improvements in the country’s economic and financial indicators.
The classification, which assesses 218 economies based on gross national income (GNI) per capita for 2025, places Algeria among eight African countries in the upper-middle-income category. Alongside Libya, it remains one of only two North African economies in this income group.
Higher income per capita
Algeria’s GNI per capita increased to $5,850 in 2025 from $5,370 a year earlier, reinforcing its position within the upper-middle-income bracket.
The country first entered the category in the 2024 classification after graduating from the lower-middle-income group.
Reflecting broader economic gains
Algeria’s Ministry of Finance previously attributed the country’s reclassification to a reassessment of gross domestic product, coupled with sustained economic growth, higher public investment, support for productive sectors and reforms aimed at strengthening public financial governance.
World Bank methodology
The World Bank’s annual income classification groups economies according to GNI per capita using the Atlas method.
For the 2025 classification, low-income economies are defined as those with GNI per capita below $1,176, lower-middle-income economies range from $1,176 to $4,635, upper-middle-income economies from $4,636 to $13,935, while countries above that threshold are classified as high-income economies.
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