PH moves up to upper middle-income economy status

National

THE Philippines has been elevated to upper-middle-income economy status by the World Bank, ending nearly four decades in the lower-middle-income category since 1987.

‎

‎Based on the World Bank's latest income classification released on Wednesday, the country's gross national income (GNI) per capita reached $4,850 in 2025, exceeding the $4,636 benchmark required for upper-middle-income economies under the Atlas method for fiscal year 2027.

‎

‎The Philippines is among five economies that moved up this year, alongside Jordan, Micronesia, Sri Lanka, and Vietnam. The World Bank attributed the country's higher classification to sustained economic performance, with the economy posting an average annual GDP growth of 5.8 percent over the last five years across key sectors.

‎

‎The new classification is expected to enhance the country's attractiveness to investors and support its credit standing. At the same time, the Philippines could gradually lose access to some concessional loans and certain trade and development assistance programs typically available to lower-income economies.

‎

‎Department of Economy, Planning, and Development Secretary Arsenio Balisacan said the milestone highlights the country's economic resilience while stressing that growth should translate into better opportunities for every Filipino.

‎

‎“We acknowledge that income disparities persist, and many continue to face economic difficulties,” he said. “Our priority is to ensure that growth becomes more inclusive and that its benefits reach all Filipinos.” (Zoe Casas PIT Comm Intern)