Philippines Ascends to Upper Middle-Income Status, Boosting Hopes for Jobs and Investments

MANILA, Philippines — The Philippines has officially graduated to Upper Middle-Income Country (UMIC) status, a significant economic milestone recognized by the World Bank. Executive Secretary Ralph Recto welcomed the development, stating that it reflects the country's strengthened economic fundamentals under the Marcos administration and is poised to open doors to more jobs, investments, and opportunities for every Filipino. "This is not just a title. It means our economy is growing more, more jobs are being created, our countrymen's income is increasing, and more investors are trusting the Philippines," Recto said. The World Bank's assessment highlighted that the Philippines' ascent to UMIC status was fueled by broad-based economic expansion. The economy posted an average annual Gross Domestic Product (GDP) growth of 5.8% over the past five years, demonstrating that growth has been driven across multiple industries rather than by a single sector. Based on estimates by the Department of Economy, Planning, and Development (DEPDev), the country's Gross National Income (GNI) per capita reached $4,850 in 2025. This figure surpasses the World Bank's upper middle-income threshold of $4,636. GNI per capita, which measures the economic output per citizen, encompassing both domestic and international earnings, is considered a key indicator of an increased standard of living. Recto, however, stressed that reaching upper middle-income status is not the finish line. "The true measure of success is whether every Filipino family feels it. Therefore, we will not stop until more Filipinos are lifted out of poverty and their lives become easier," he added. To sustain this growth momentum, the government's priorities remain clear: bringing down inflation, protecting jobs, strengthening purchasing power, boosting consumer and business confidence, and attracting even more investments. In the second half of the year, the government plans to accelerate the implementation of major infrastructure projects. It will also continue rolling out a more targeted UPLIFT program to cushion the lingering effects of the Middle East conflict, efficiently execute the 2026 national budget, and finalize a responsive 2027 national budget. The administration is also committed to continuing reforms aimed at making doing business easier, strengthening digital connectivity, improving education and workforce skills, and building greater resilience against climate-related risks and external shocks. As the Philippines gradually relies less on concessional financing as an upper middle-income country, the government will expand the use of public-private partnerships (PPPs), deepen domestic capital markets, and tap other market-based financing sources to sustain investments in infrastructure and development. After remaining a lower middle-income economy since 1987, the Philippines now joins regional upper middle-income economies such as China, Malaysia, Thailand, Indonesia, and Vietnam. (Contributed story)