METRO MANILA, Philippines – The World Bank reclassified the Philippines, along with four other countries, as an upper-middle-income economy on July 1.
The World Bank classifies economies into four income groups based on Gross National Income (GNI) per capita, calculated using the Atlas method.
Department of Finance (DOF) Secretary Frederick D. Go stated that this transition reflects the country’s improving economic performance and the effectiveness of the government’s reform efforts.
“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 economic fundamentals and create more opportunities for our people. Now, we must continue to build on these gains so that the benefits of economic development reach more Filipinos,” Secretary Go said in a statement.
This reclassification reflects the country’s gross national income (GNI) per capita, which reached US$4,850, surpassing the World Bank’s upper-middle-income threshold of US$4,636.
According to the World Bank, the reclassification was driven by sustained, broad-based economic growth across all major industries, with the country’s gross domestic product (GDP) expanding by an average of 5.8% annually over the past five years.
In a statement issued on July 6, Department of Economy, Planning and Development Secretary Arsenio M. Balisacan reaffirmed the government’s commitment to sustaining economic growth and ensuring that economic progress translates into better lives for Filipinos.
Balisacan also highlighted the importance of sustaining investor confidence and maintaining economic growth following the reclassification.
The Secretary also emphasized the importance of accelerating strategic infrastructure projects, encouraging public and private investment, preserving food and energy security, strengthening climate resilience, improving productivity and competitiveness through education, healthcare and innovation, and reinforcing institutions to sustain long-term development.
While the Philippines’ transition to an upper-middle-income economy recognizes the country’s sustained economic progress and resilience, continued reforms will be essential to ensure that economic growth remains inclusive and benefits all Filipinos. The French Chamber of Commerce and Industry in the Philippines welcomes this milestone and commends the efforts of the Filipino people, the private sector, and the government in achieving it. The Chamber remains committed to supporting the country’s continued economic development by strengthening French-Philippine business relations, promoting investment, and fostering sustainable economic cooperation.
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Sources: Department of Finance (DOF), Department of Economy, Planning, and Development (DEPDev), Philippine News Agency (PNA), ABS-CBN News, GMA News (photo source)