DEPDev: PH to enter upper-middle income status within Marcos term despite crisis

The Department of Economy, Planning and Development (DEPDev) expressed confidence Wednesday that the Philippines’ aspiration to elevate into upper-middle income economy (UMIC) status will be achieved within the term of President Ferdinand Marcos Jr.

At a Palace briefing Presidential Communications Undersecretary Claire Castro was asked if the government’s aim to bring the country to UMIC level is still attainable despite the ongoing price shocks resulting from the Middle East war.

In response, Castro read DEPDev Secretary Arsenio Balisacan’s statement.

“By July 2026, the World Bank will indicate whether we have met the income threshold for upper middle income status based on 2025 performance. Formal classification may require additional years of sustained results,” Balisacan was quoted as saying.

“We remain confident this will be achieved within the term of the Marcos administration. Despite geopolitical tensions and heightened uncertainty, we will stay the course in stabilizing the economy and strengthening social protection to sustain poverty reduction,” according to the country’s chief economist.

The Philippines remains a lower-middle income economy, as its gross national income (GNI) per capita at $3,950 in 2022 fell within the World Bank's bracket for lower-middle-income economies, $1,136–$4,465, which was raised from $1,086–$4,255 a year ago.

GNI per capita measures the country’s total income divided by its population.

For fiscal year 2024, the World Bank classifies low-income economies as those with a GNI per capita of $1,135 or less in 2022; lower middle-income economies are those with a GNI per capita between $1,136 and $4,465; upper middle-income economies are those with a GNI per capita between $4,466 and $13,845; and high-income economies are those with a GNI per capita of $13,845 or more.

Currently, the Philippines is joined in the lower-middle income bracket by Vietnam ($4,010 GNI per capita), Laos ($2,360), Cambodia ($1,700), and Myanmar ($1,210).

It trailed behind its neighbors, which are in the upper-middle income level: Malaysia ($11,780), Thailand ($7,230), and Indonesia ($4,580).

Singapore ($67,200) and Brunei ($31,410) are in the high-income bracket. — RSJ, GMA News