A few decades ago, there was a group of wealthy countries, a group of poor countries, and a large gap between them. Back then it made sense to see them as 2 separate groups, first world and third. Right now however, they're no longer separate groups - there's a continuous spectrum. A growing number of countries have been crawling out of poverty.
Some countries are rich, some are poor, and some are in between. They're no longer separate groups.
(This of course does not mean that there isn't a poverty problem in the world. Just that "third world" no longer accurately describes the situation.)