The World Bank has officially upgraded the Philippines' economic classification after the country’s GNI per capita surpassed the threshold for upper-middle-income status, according to the Department of Economy, Planning, and Development.
The World Bank has confirmed that the Philippines has reached the status of an upper-middle-income country (UMIC) following the increase in its gross national income (GNI) per capita beyond the set threshold for this classification. According to the Department of Economy, Planning, and Development (DEPDev) on Wednesday, the Philippines achieved a GNI per capita of $4,850, exceeding the $4,636 cutoff defined for UMICs.
DEPDev attributed this milestone to sustained economic growth, prudent macroeconomic management, and long-term structural reforms. The department noted a consistent economic expansion with an average GDP growth of 5.8% annually between 2021 and 2025. Industries across the board performed strongly, increasing the GNI per capita by 8.5% in 2025, enabling the shift from lower-middle-income to upper-middle-income status.
DEPDev Secretary Arsenio Balisacan highlighted the robustness of the Philippine economy despite global and domestic challenges. He emphasized the government’s commitment to inclusive growth and continuing structural reforms to maintain development momentum.
The department expects the new economic classification to bolster the country’s credit profile, enhance investor confidence, and attract higher-quality investments that will create better job opportunities for Filipinos.
While the upgrade may lead to a gradual reduction in low-interest developmental loans, Balisacan underscored the long-term benefits stemming from a stronger economic base and expanded market access. He also acknowledged the significant contribution of Overseas Filipino Workers (OFWs) to this achievement but stressed the goal of generating more quality jobs domestically to make overseas employment a choice rather than a necessity.
Despite this progress, the Secretary cautioned that income disparities and economic challenges persist. DEPDev’s priority remains ensuring that economic growth is inclusive and benefits all sectors of Filipino society.
Sources referenced:
- https://www.gmanetwork.com/news/balitambayan/balita/993436/world-bank-kinumpirma-ang-pagiging-upper-middle-income-ng-pilipinas-depved/story/