Namibia has been reclassified from an upper-middle income to a lower-middle income country, according to the latest World Bank’s FY26 income classification update.
Namibia is the only country globally to have moved down an income group in this year’s review.
“Namibia was the only country whose classification moved downward this year, from the ‘upper-middle income’ to the ‘lower-middle income’ category,” the World Bank said in its report.
The reclassification follows a slowdown in economic growth.
The World Bank reported that Namibia’s GDP grew by 3.7% in 2024, down from 4.4% in 2023, citing a sharp contraction in the mining and quarrying sector as a major factor.
Growth in the sector dropped from 19.3% in 2023 to a decline of 1.2% in 2024, which the report attributes to “weak global demand for diamonds”.
Inflation, measured by the GDP deflator, also slowed significantly — from 6.6% in 2023 to 3.3% in 2024, the World Bank noted.
The classification is based on a country’s Gross National Income (GNI) per capita, calculated using the Atlas method.
The World Bank updates the income categories annually and uses them to track global development trends and guide policy.
“The updated country income classifications for FY26, based on the Atlas GNI per capita of 2024, are available. They reveal shifts due to changes in Atlas GNI per capita and classification thresholds,” the report noted.
The World Bank added: “Policymakers should consider these classifications when designing economic policies and strategies. Understanding the factors influencing income classification can guide efforts stimulating economic growth, help manage inflation, and enhance integration into the global economy.”
Globally, the report highlights improvements in various regions.
In Sub-Saharan Africa, the share of low-income countries declined from 75% to 45%, with one country reaching high-income status.
South Asia saw all its countries move out of the low-income group into lower- or upper-middle income categories by 2024.
