When looking to export to Senegal, apply for IDA funding, or simply understand why Côte d’Ivoire attracts so much direct investment, one quickly encounters a problem: the lists of developing countries available online are often outdated. The World Bank updated its income thresholds in July 2024, shifting several economies from one category to another for the 2025 fiscal year.
Income thresholds 2024-2025: what the World Bank’s update changes concretely
The classification is based on gross national income (GNI) per capita, calculated using the Atlas method. Four brackets structure the ranking: low income, lower middle income, upper middle income, and high income. The principle is simple, but its consequences are direct.
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A country that crosses a threshold upward potentially loses access to concessional loans from the International Development Association. Conversely, a country reclassified downward becomes eligible again. The classification conditions access to international funding, not just the statistical label.
To consult the list of developing countries as it applies in 2025, one must rely on data post-July 2024, and not on the static tables that have circulated for years on many sites.
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In 1987, about 30% of countries were classified as low-income economies. This proportion has significantly decreased since then, reflecting a gradual rise of certain regions, particularly in Southeast Asia and West Africa.
Sub-Saharan Africa and GDP growth: the fastest-growing economies
The majority of the fastest-growing economies in 2025 are located on the African continent. This is not a coincidence: several of these countries combine abundant natural resources with recent economic reforms.
- South Sudan is projected to have one of the highest GDP growth rates in the world, driven by oil production, despite ongoing political instability.
- Senegal benefits from the exploitation of new hydrocarbon deposits and massive investments in infrastructure, with strong projected growth.
- Uganda is focusing on hydropower and tourism to diversify its economy beyond agriculture.
- Côte d’Ivoire continues to attract foreign direct investment in agro-industry and services, confirming its role as a regional engine in West Africa.
One could simply look at GDP growth rates, but they do not tell the whole story. Strong growth does not mean development is secured. A country whose growth relies solely on oil exports remains vulnerable to price shocks. Economic diversification remains the determining criterion.
Raw material exports and structural fragility
Most African countries with high growth derive their revenues from the export of natural resources. Oil, gas, and minerals represent a dominant share of their export revenues. The problem: when global prices fall, national budgets contract sharply.
This is precisely why UNCTAD, in its 2025 report on least developed countries, emphasizes services as a new pathway to structural transformation. Digital services, logistics, finance, tourism: these sectors offer a more stable foundation than oil rents.
Least developed countries, developing countries, emerging economies: distinctions that matter for funding
These terms are often mixed up, and this is a real operational problem. Least developed countries (LDCs) form a subgroup identified by the United Nations, home to about one billion people. Their weight in global GDP remains marginal, around 1.3%. They capture only a tiny fraction of foreign direct investment and global exports.
A developing country is not necessarily an LDC. Côte d’Ivoire, Senegal, or Bangladesh are developing countries, but their economic trajectory differs radically from that of South Sudan or Niger. The criteria for inclusion in the LDC category combine income per capita, economic vulnerability, and level of human capital (health, education).
Consequences on access to aid and loans
For an exporter or a funder, the distinction is not theoretical. An LDC benefits from specific trade preferences (reduced tariffs, easier access to certain markets). A country that exits the LDC category, what the UN calls “reclassification,” loses these advantages over a transition period.
The UNCDF, the UN’s financial arm dedicated to LDCs, focuses its interventions on these economies for a specific reason: this is where capital produces the strongest leverage effect on inclusive growth.
Populations and economic difficulties: the ground reality in Africa
African populations surveyed by Afrobarometer show that the majority still face concrete economic difficulties, even in countries showing sustained GDP growth. The gap between macroeconomic indicators and daily lived experiences remains pronounced.
Access to basic infrastructure (roads, electricity, drinking water) remains a major hurdle in many sub-Saharan African countries. Infrastructure investments are progressing, but their pace is not always sufficient to absorb the rapid population growth in the region.
The African Development Bank Group emphasizes that Africa continues to demonstrate resilience despite global economic uncertainties. Returns vary on this point according to sub-regions, but the general trend remains one of African growth exceeding the global average, driven by domestic consumption and investments in services.
The challenge for 2025 and beyond is not just about which countries appear on this or that list. What matters is understanding which mechanisms, World Bank classification, LDC status at the UN, eligibility for concessional funding, determine the real opportunities for each economy. Crossing an income threshold can close a line of credit or open a market, and these shifts occur every year in July.