The World Bank has maintained Iran's classification as an Upper Middle-Income Economy in its FY2027 Country Income Classifications, which took effect on July 1, 2026. The classification is based on each country's Gross National Income (GNI) per capita calculated using the World Bank's Atlas method.
Under the FY2027 methodology, economies are grouped into four income categories:
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- Low income: GNI per capita of $1,175 or less
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- Lower middle income: $1,176–4,635
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- Upper middle income: $4,636–14,375
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- High income: Above $14,375
Iran remains in the Upper Middle-Income category, reflecting its estimated GNI per capita within the World Bank's designated range for the fiscal year.
The World Bank's income classifications are updated annually to reflect changes in national income levels, exchange rates, inflation, and population data. The classifications are widely used by international financial institutions, investors, researchers, and policymakers to compare countries' levels of economic development and to inform lending policies, development programs, and economic analysis.
Although the income classification is not a direct measure of overall economic performance or living standards, it provides an internationally recognized benchmark for assessing a country's relative level of development. Countries can move between income groups over time as their GNI per capita rises or falls.
Iran's continued placement in the upper middle-income group comes despite ongoing economic challenges, including international sanctions, currency volatility, and inflation. The classification indicates that, based on the World Bank's Atlas methodology, Iran's national income per capita remains above the upper middle-income threshold while still below the level required to qualify as a high-income economy.-