Middle-Income Countries (MICs)

AAA

DEFINITION of 'Middle-Income Countries (MICs)'

Nations with a per-capita gross national income in 2012 between $1,036 and $12,615. Middle-income countries (MICs) are one of the income categories that the World Bank uses to classify economies for operational and analytical purposes.

The World Bank classifies every economy as low, middle or high income. The World Bank uses GNI per capita as the basis for this classification because it views GNI as a broad measure that is considered to be the single best indicator of economic capacity and progress. Low-income and middle-income economies are collectively referred to as developing economies.

INVESTOPEDIA EXPLAINS 'Middle-Income Countries (MICs)'

MICs are a very diverse group by size, population and income level, ranging from tiny nations with very small populations such as Belize and the Marshall Islands to three of the BRIC giants – Brazil, India and China. China and India together hold nearly one-third of humanity and continue to be increasingly influential players in the global economy.

The diverse nature of the 103 MICs means that the challenges facing many of them are quite different. For nations in the lower-middle-income category, the biggest issue may be providing its citizens with essential services such as water and electricity. For the economies in the upper-middle-income category, the biggest challenges may be curbing corruption, improving governance, etc.

MICs are essential for continued global economic growth and stability. According to the World Bank, sustainable growth and development in MICs has positive spillovers to the rest of the world. Examples are poverty reduction, international financial stability and cross-border global issues including climate change, sustainable energy development, food and water security, and international trade.

As of 2012, there were 103 MICs, further subdivided into 48 lower-middle-income economies (GNI between $1,036 and $4,085) and 55 upper-middle-income economies (GNI between $4,086 and $12,615). MICs have a combined population of 5 billion, or over 70% of the world’s 7 billion people, and include 75% of the world’s poor. Representing about one-third of global GDP, MICs are a major engine of global economic growth.

RELATED TERMS
  1. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not ...
  2. Income

    Money that an individual or business receives in exchange for ...
  3. Anatolian Tigers

    A colloquial term that refers to a number of cities in central ...
  4. Tatra Tiger

    A nickname or colloquial term for the central European nation ...
  5. CIVETS (Colombia, Indonesia, Vietnam, ...

    An acronym given to the countries Colombia, Indonesia, Vietnam, ...
  6. Closed Economy

    An economy in which no activity is conducted with outside economies. ...
RELATED FAQS
  1. What is the difference between a bill of exchange and a promissory note?

    A bill of exchange is a written agreement between two parties – the buyer and the seller – used primarily in international ... Read Full Answer >>
  2. What emerging markets are best suited for investing in the aerospace sector?

    The two best emerging markets for investing in the aerospace sector are China and India. Both countries have a rapidly expanding ... Read Full Answer >>
  3. What are some common risks that are unique to investing in the electronics sector?

    The electronics sector presents several potential risks for investors. Variable costs associated with production may vary, ... Read Full Answer >>
  4. What does 'Incoterms' mean in relation to Ex Works (EXW) trades?

    Ex works is part of the published Incoterms and outlines the obligations of transportation to buyers and sellers. The International ... Read Full Answer >>
  5. What are the differences between Ex Works (EXW) and Free On Board (FOB)?

    Ex Works (EXW) and Free on Board (FOB) are Incoterms used to describe situations where sellers deliver goods. Ex Works describes ... Read Full Answer >>
  6. What impact will growth in the emerging markets have on automotive sector?

    Continuing economic growth in the emerging market economies should have a very positive impact on the automotive industry ... Read Full Answer >>
Related Articles
  1. Insurance

    Talk Is Cheap: Campaign Promises And The Economy

    A president's campaign trail promises often come up against economic reality.
  2. Economics

    Sanctions Between Countries Pack a Bigger Punch Than You Might Think

    In response to Russia's annexation of Crimea, in March 2014 the West slapped sanctions on dozens of Russian hotshots. So what, you ask? Well, sancitons can pack a bigger punch than you might ...
  3. Forex Fundamentals

    The Effects Of Currency Fluctuations On The Economy

    Currency fluctuations are a natural outcome of the floating exchange rate system that is the norm for most major economies. The exchange rate of one currency versus the other is influenced by ...
  4. Professionals

    Employability, The Labor Force And The Economy

    Individuals do not have absolute control of their employability since employability is also affected by market and economic conditions.
  5. Economics

    How Education And Training Affect The Economy

    Education and training benefit not only the worker, but also the employer and the country as a whole.
  6. Economics

    Globalization: Progress Or Profiteering?

    Proponents of globalization argue that it helps the economies of developing nations and makes goods cheaper, while critics say that globalization reduces domestic jobs and exploits foreign workers. ...
  7. Economics

    Tankan Survey Provides Clues To Japanese Economy

    This quarterly survey is crucial for assessing Japan's economic health.
  8. Personal Finance

    State-Run Economies: From Public To Private

    Find out how former Iron Curtain countries used private enterprise to join the world financial markets.
  9. Economics

    How Does The Economy Affect House Size?

    The better the economy, the bigger the house. But beware - everything that glitters isn't gold.
  10. Investing

    Why International Diversification Matters Today

    Given the breadth and diversity of the U.S. economy and market, many U.S. investors feel comfortable keeping their money within U.S. borders.

You May Also Like

Hot Definitions
  1. Fiduciary

    1. A person legally appointed and authorized to hold assets in trust for another person. The fiduciary manages the assets ...
  2. Expected Return

    The amount one would anticipate receiving on an investment that has various known or expected rates of return. For example, ...
  3. Carrying Value

    An accounting measure of value, where the value of an asset or a company is based on the figures in the company's balance ...
  4. Capital Account

    A national account that shows the net change in asset ownership for a nation. The capital account is the net result of public ...
  5. Brand Equity

    The value premium that a company realizes from a product with a recognizable name as compared to its generic equivalent. ...
Trading Center