BUSINESS
Advocates Philippines
Philippines Achieves Upper-Middle Income Status, Says World Bank
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The Philippines has officially moved up to upper-middle income country (UMIC) status, according to the latest assessment released by the World Bank, marking a major milestone for the country's economy.
In its report published Wednesday, the World Bank said the Philippines recorded a gross national income (GNI) per capita of USD4,850, surpassing the USD4,636 threshold needed to qualify as an upper-middle income economy.
The country joins Jordan, Micronesia, Sri Lanka, and Vietnam, which also advanced to the same income classification.
The World Bank attributed the Philippines' upgrade to broad-based economic growth, noting that the country's gross domestic product (GDP) expanded by an average of 5.8 percent annually over the past five years. It said the growth was driven by gains across various industries rather than relying on just one sector.
The Department of Economy, Planning, and Development (DEPDev) welcomed the recognition, saying the country's improved status reflects years of sustained economic growth, sound fiscal management, and long-term reforms.
DEPDev Secretary Arsenio Balisacan described the achievement as proof of the Philippine economy's resilience despite global and domestic challenges. He said the government remains committed to pursuing inclusive growth while keeping its long-term development agenda on track.
According to the agency, the new classification is expected to improve the country's credit standing, attract more investors, and create greater opportunities for financing and quality investments that could generate more jobs for Filipinos.
Although the country may gradually receive less concessional Official Development Assistance (ODA), Balisacan said the benefits of stronger economic fundamentals and better access to global markets are expected to outweigh the adjustments.
He also recognized the important contribution of overseas Filipino workers (OFWs), whose earnings abroad helped raise the country's gross national income.
At the same time, Balisacan emphasized that the government's long-term goal is to create more quality jobs in the Philippines so that working overseas becomes an option rather than a necessity.
Despite the milestone, the economic chief acknowledged that challenges remain, particularly income inequality and the financial struggles still faced by many Filipinos. He said the government's priority is to ensure that economic growth becomes more inclusive and that its benefits are felt by all sectors of society.
In its report published Wednesday, the World Bank said the Philippines recorded a gross national income (GNI) per capita of USD4,850, surpassing the USD4,636 threshold needed to qualify as an upper-middle income economy.
The country joins Jordan, Micronesia, Sri Lanka, and Vietnam, which also advanced to the same income classification.
The World Bank attributed the Philippines' upgrade to broad-based economic growth, noting that the country's gross domestic product (GDP) expanded by an average of 5.8 percent annually over the past five years. It said the growth was driven by gains across various industries rather than relying on just one sector.
The Department of Economy, Planning, and Development (DEPDev) welcomed the recognition, saying the country's improved status reflects years of sustained economic growth, sound fiscal management, and long-term reforms.
DEPDev Secretary Arsenio Balisacan described the achievement as proof of the Philippine economy's resilience despite global and domestic challenges. He said the government remains committed to pursuing inclusive growth while keeping its long-term development agenda on track.
According to the agency, the new classification is expected to improve the country's credit standing, attract more investors, and create greater opportunities for financing and quality investments that could generate more jobs for Filipinos.
Although the country may gradually receive less concessional Official Development Assistance (ODA), Balisacan said the benefits of stronger economic fundamentals and better access to global markets are expected to outweigh the adjustments.
He also recognized the important contribution of overseas Filipino workers (OFWs), whose earnings abroad helped raise the country's gross national income.
At the same time, Balisacan emphasized that the government's long-term goal is to create more quality jobs in the Philippines so that working overseas becomes an option rather than a necessity.
Despite the milestone, the economic chief acknowledged that challenges remain, particularly income inequality and the financial struggles still faced by many Filipinos. He said the government's priority is to ensure that economic growth becomes more inclusive and that its benefits are felt by all sectors of society.
Jul 2, 2026
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