Russia has defied Western sanctions and achieved high-income status, according to the World Bank's latest rankings [f3a89966]. Despite facing sanctions due to the Ukraine war, Russia's economy has seen a surprising rise, primarily driven by a significant increase in military-related activities. This growth has boosted Russia's GDP and GNI per capita by 11.2% [f3a89966].
The World Bank's upgrade confirms that the growth is primarily driven by the demand for military goods and services. However, the well-being of Russian citizens remains a concern [f3a89966].
Russia's self-sufficiency in energy, raw materials, food, and skilled labor has been identified as key factors contributing to its economic growth. President Putin has emphasized the importance of expanding ties with Africa, the Middle East, and Asia [f3a89966].
In addition to Russia, the World Bank also upgraded Bulgaria and Palau to high-income countries, while Ukraine moved up to an upper-middle-income country. However, the West Bank and Gaza were downgraded due to the impact of Israel's war against Hamas [bc57e5c8].