- The IMF classifies the world into two major groups:
- Advanced economies.
- Emerging market and developing economies.
- IMF’s classification is based on three parameters:
- Per capita income (using PPP exchange rate).
- Export diversification.
- Degree of integration into the global financial system.
- Difference: World Bank uses GNI per capita (nominal exchange rate) primarily.
- IMF uses per capita income (PPP exchange rate), export diversification, and global financial integration.