Atlas method in the context of "U.S. dollar"

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⭐ Core Definition: Atlas method

The World Bank has used the Atlas method since 1993 to estimate the economic size of countries based on their gross national income (GNI) in U.S. dollars.

To convert a country's GNI from its local currency to U.S. dollars, the Atlas method uses a conversion factor that averages exchange rates over three years. This helps reduce the impact of temporary exchange rate changes. Additionally, it adjusts for differences in inflation rates between the country (using its GDP deflator) and several developed countries (using a weighted average of their GDP deflators in Special Drawing Rights, or SDR, terms). The converted GNI in U.S. dollars is then divided by the country's midyear population to determine GNI per capita.

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Atlas method in the context of World Bank high-income economy

A high-income economy is defined by the World Bank as a country with a gross national income per capita of US$13,935 or more in 2024, calculated using the Atlas method. While the term "high-income" is often used interchangeably with "First World" and "developed country", the technical definitions of these terms differ. The term "first world" commonly refers to countries that aligned themselves with the U.S. and NATO during the Cold War. Several institutions, such as the Central Intelligence Agency (CIA) or International Monetary Fund (IMF), take factors other than high per capita income into account when classifying countries as "developed" or "advanced economies". According to the United Nations, for example, some high-income countries may also be developing countries. The GCC countries, for example, are classified as developing high-income countries. Thus, a high-income country may be classified as either developed or developing. Although Vatican City is a sovereign state, it is not classified by the World Bank under this definition.

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Atlas method in the context of List of countries by GNI (nominal) per capita

This is a list of countries by gross national income per capita in 2024 at nominal values, according to the Atlas method, an indicator of income developed by the World Bank. GNI per capita is the gross national income divided by the midyear population. GNI is the sum of value added by all resident producers plus any product taxes (less subsidies) not included in the valuation of output plus net receipts of primary income (compensation of employees and property income) from abroad.

Knowing a country's GNI per capita is a good first step toward understanding the country's economic strengths and needs, as well as the general standard of living on average. A country's GNI per capita tends to be closely linked with other indicators that measure the social, economic, and environmental well-being of the country and its people. The GNI per capita at Purchasing power parity are shown at list of countries by GNI (PPP) per capita. Change of GNI per capita with time are at list of countries by GNI per capita growth.

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