Philippines now an 'upper-middle income' country

MANILA, July 3 ------ The Philippines is now officially classified as an upper middle income economy, the Department of Economy, Planning, and Development (DEPDev) announced.

The World Bank has moved the Philippines from lower middle income to upper middle income because the Philippines has hit the Gross National Income (GNI) per capita required, which is also followed by the rest of the globe. Based on the global lending body’s criteria for fiscal year 2026, which begins July 1, an upper middle income country has to reach GNI per capita of between $4,496 and $13,935.

In 2024, the Philippines GNI per capita stood at $4,470. Finance Secretary Frederick Go welcomes this new development. He said this signifies that the efforts of the government are working to improve the lives of Filipinos. “The Philippines’ transition to an upper middle income country is an affirmation of the reforms and policies that the government has consistently pursued to strengthen our economy and to create more opportunities for our people,” he told ABS-CBN News.

He said government must also ensure to continue to build on these gains and continue the reforms so that the benefits of economic development can reach more Filipinos. Go said the move to an upper middle income status is a mere sign that efforts done are working. He added that there are no specific benefits or incentives, but it is a mark that the Philippine economy is improving.

One clear impact, however, is losing aid or official development assistance projects. Those in the upper middle income status are not eligible for foreign aid in general. But Go said that is part of moving upwards and the country can manage. “That’s part of growing up. We’ve been aware from day one that when we move from a lower middle income to an upper middle economy, there are some things you have to give up,” he added.

He added that the income classification is a mark that the whole country has improved. This is because of new job creation, more foreign investments, and more reforms being done. When asked what will be his response if Filipinos ask what this upper middle income means to them, especially to the poor, he said the new income grouping is a sign that, as a country, wealth has increased and this will have an effect on everyone in the long run. “For you to reach upper middle classification, that actually means that the population has increased in wealth per capita. That’s what it means. It means more Filipinos have improved wealth classification by global standards,” he added.

Source: news.abs-cbn.com