PH’s upgrade to upper middle-income status means more jobs and better opportunities for Filipinos — Recto

Executive Secretary Ralph G. Recto welcomed the Philippines’ official graduation to upper middle-income country (UMIC) status, underscoring that the milestone reflects the country’s stronger economic fundamentals under the Marcos Jr. administration and opens the door to more jobs, investments, and opportunities for every Filipino.

“Hindi lang ito titulo. Ibig sabihin nito, mas lumalago ang ekonomiya natin. Mas dumarami ang trabahong nalilikha, mas lumalaki ang kita ng ating mga kababayan, at mas maraming investors ang nagtitiwala sa Pilipinas,” Mr. Recto said.

The World Bank noted that the Philippines’ ascent to upper middle-income status was fueled by broad-based economic expansion, with the economy posting an average annual gross domestic product (GDP) of 5.8% over the past five years — evidence 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 US$4,850 in 2025, exceeding the World Bank’s upper middle-income threshold of US$4,636.

GNI per capita measures the economic output per citizen, consisting of both domestic and international earnings. A higher GNI per capita is one indication of increased standard of living.

Mr. Recto stressed, however, that reaching upper middle-income status is not the finish line.

“Ang tunay na sukatan ng tagumpay ay kung nararamdaman ba ito ng bawat pamilyang Pilipino. Kaya hindi tayo titigil hangga’t mas maraming Pilipino ang nakakaahon sa kahirapan at mas gumagaan ang kanilang pamumuhay,” he added.

To sustain growth momentum, he said the government’s priorities remain clear: bring down inflation, protect jobs, strengthen purchasing power, boost consumer and business confidence, and attract even more investments.

To do this, the government will accelerate the implementation of major infrastructure projects in the second half of the year, 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 will also continue reforms to make doing business easier, strengthen digital connectivity, improve education and workforce skills, and build 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, 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.

Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by publishing their stories on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.

Join us on Viber at https://bit.ly/3hv6bLA to get more updates and subscribe to BusinessWorld’s titles and get exclusive content through www.bworld-x.com.