Bahrain Secures High-Income Status for 2024-2025

TDT | Manama

The Daily Tribune - www.newsofbahrain.com

The Kingdom of Bahrain has been recognised as a high-income country, according to the World Bank's latest classification for the fiscal year 2024-2025. This achievement is a notable point in Bahrain's economic journey and its success in providing a high standard of living for its citizens.

With a per capita gross domestic income (GDI) exceeding $13,845 by the end of 2023, Bahrain has surpassed the World Bank's high-income threshold of $14,005 per capita GNI. This accomplishment reflects Bahrain's sustained economic growth and its strategic diversification beyond the traditional oil and gas sectors.

The World Bank's annual income classification, updated on July 1, reflects the previous calendar year's per capita GNI. The classification system serves as a widely recognised indicator of a country's economic capacity and development level, with countries categorised into four groups: low-income, lower-middle-income, upper-middle-income, and high-income, based on their per capita GNI.

Bahrain's transition to high-income status is particularly noteworthy in the global context. In the late 1980s, 30% of reporting countries were classified as low-income, while only 25% were considered high-income. By 2023, these proportions have shifted dramatically, with only 12% of countries classified as low-income and 40% as high-income.

Bahrain's success can be attributed to its strategic efforts to encourage economic diversification, attract foreign direct investment, and develop its human capital. The country has invested heavily in sectors such as manufacturing, financial services, tourism, and renewable energy, reducing its reliance on oil and gas revenues.

Bahrain's shift to high-income status coincides with the reclassification of several other countries, including Bulgaria, Palau, and Russia, which have also moved from upper-middle-income to high-income status. This change reflects the ongoing global economic evolution and the success of countries in advancing their development agendas.

The report also notes the upward transitions of Algeria, Iran, Mongolia, and Ukraine from lower-middle-income to upper-middle-income status, reflecting the dynamic nature of the global income landscape.

Bahrain's achievement speaks to its sound economic policies, diversification efforts, and drive to create an environment where its citizens can thrive. As the Kingdom continues to build on this success, it serves as an example for other nations aiming to achieve sustainable economic growth and improve the overall well-being of their people.