The World Bank has revised upwards the status of Cambodia’s economy, with the Kingdom moving up a rung from the low-income bracket into lower-middle income territory.
Every year the World Bank revises the status of the world economies based on their estimated gross national income (GNI) per capita for the previous calendar year.
According to the World Bank’s criteria for the year 2016, low-income economies are defined as those with a GNI per capita of less than $1,025, lower-middle-income countries are those between $1,026 and $4,035, and upper-middle-income economies are in the range of $4,037 to $12,745. High-income countries are defined as those with a GNI per capita above that level.
While the status upgrade is generally a point of pride for policymakers and citizens, it could also be a point of consternation. The Kingdom’s low-income status made the country eligible for a host of soft loans, grants and development packages, as well as highly favourable trade privileges. The revised income status is expected to result in a scaling back of these benefits.
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