02/07/2025
LOOK: PHILIPPINES POISED TO HIT UPPER-MIDDLE INCOME STATUS BY 2025 OR 2026!
The Philippines could achieve upper-middle income (UMIC) status as early as end-2025, according to Finance Secretary Ralph Recto, who said the economy’s performance puts the target within reach.
The latest World Bank data show the country’s gross national income (GNI) per capita surged to a record USD4,470 in 2024, surpassing the lower threshold of the USD4,454–4,592 target set in the Philippine Development Plan 2023-2028.
Achieving UMIC classification requires a GNI per capita of USD4,496 to USD13,935, and economists believe sustained growth above 6%, controlled inflation, and stable exchange rates will help the country cross that line soon.
To support this goal, the government approved an expansionary budget of PHP6.326 trillion for 2025, with the proposed PHP6.793 trillion budget for 2026 integrating climate resilience, stronger social protection, and improved services for local governments.
Economists John Paolo Rivera and Michael Ricafort agree the country could reach UMIC status within President Ferdinand Marcos Jr.’s term if growth momentum continues and inflation stays tame.
Source: PNA