Iraq has maintained its position as an upper-middle-income country in the World Bank’s latest 2026–2027 Country Income Classifications, placing it alongside countries such as Jordan, Turkey, China, Brazil, and Malaysia.
The World Bank updates its income classifications every year using the Atlas method, which calculates a country’s Gross National Income (GNI) per capita. For the 2026–2027 fiscal year, countries with a GNI per capita between $4,636 and $14,375 are classified as upper-middle-income economies, while those above that threshold are considered high-income economies.
According to this year’s report, six economies moved into a higher income category, while no countries were downgraded.
The World Bank noted that these changes were driven by factors such as economic recovery, stronger export performance, and improvements in national statistical reporting, rather than a single global trend.
Iraq’s ability to retain its upper-middle-income status comes at a time when the country is working to reduce its dependence on oil revenues. The government has been focusing on economic diversification, infrastructure development, private-sector growth, and attracting more foreign investment.
While the classification is an important economic indicator, the World Bank emphasizes that income categories do not measure overall living standards, wealth distribution, or quality of life. Instead, they are used as a standardized tool for comparing economies based on average national income per person.
Maintaining its current classification is viewed as a positive sign for Iraq’s economy, but analysts note that long-term progress will depend on continued reforms, investment growth, and the successful development of non-oil sectors.
