World Bank upgrades BRICS’ Russia to high-income status

Russia’s economy has defied the odds. Despite sanctions following the invasion of Ukraine in February 2022, the World Bank has upgraded Russia to “high-income country” status. The upgrade from upper-middle-income comes from various factors.

“Economic activity in Russia was influenced by a large increase in military-related activity in 2023.”

World Bank

This surge was accompanied by a rebound in trade (+6.8%), growth in the financial sector (+8.7%), and a rise in construction (+6.6%).

The increases in real GDP (3.6%) and nominal GDP (10.9%) are notable. Additionally, Russia’s Atlas Gross National Income (GNI) per capita grew by 11.2%.

Ukraine, meanwhile, has experienced both economic recovery and demographic decline. After a severe drop of 28.8% in real GDP in 2022, Ukraine saw a 5.3% growth in 2023.

World Bank upgrades Russia to high-income status
Source: World Bank

This recovery is primarily driven by construction activity, which grew by 24.6%. Investment spending has also surged by 52.9%, aiding in Ukraine’s reconstruction efforts despite ongoing conflict.

However, Ukraine’s population has declined by more than 15% since the Russian invasion began. This has further influenced economic indicators, leading to an 18.5% increase in nominal Atlas GNI per capita.

BRICS, SCO, and the new world order

The Shanghai Cooperation Organization (SCO), along with the BRICS boys, have been busy shaping a new multipolar world order. They want to yank the US dollar off its throne. Russian president Vlad Putin recently commented on the matter, saying:

“Engagement with multilateral institutions seeks to shift the international system away from a U.S.-dominated unipolar order.”

Putin thinks this shift “irreversible” and warns against global domination by any single country or group. Meanwhile, China’s boy Xi Jinping has expressed China’s readiness to embrace change.

World Bank upgrades Russia to high-income status
President Xi Jinping and President Vladimir Putin. Credits: Getty Images

He says he is committed to creating new opportunities. Xi also shared that he supports Kazakhstan in joining the BRICS.

“In the face of unprecedented, epochal and historical changes, the Chinese side is ready, together with the Kazakh side, to create new opportunities in times of crisis and open up new prospects.”

– Xi Jinping

BRICS is all about expansion at the moment. Argentina had planned to join last year. However, President Javier Milei withdrew the country’s application shortly after taking office in December.


Reporting by Jai Hamid


Earn more CFN tokens by sharing this post. Copy and paste the URL below and share to friends, when they click and visit Parrot Coin website you earn: https://cryptoforum.news0


CFN Comment Policy

Your comments MUST BE constructive with vivid and clear suggestion relating to the post.

Your comments MUST NOT be less than 5 words.

Do NOT in any way copy/duplicate or transmit another members comment and paste to earn. Members who indulge themselves copying and duplicating comments, their earnings would be wiped out totally as a warning and Account deactivated if the user continue the act.

Parrot Coin does not pay for exclamatory comments Such as hahaha, nice one, wow, congrats, lmao, lol, etc are strictly forbidden and disallowed. Kindly adhere to this rule.

Constructive REPLY to comments is allowed

Leave a Reply