DEPDev: World Bank confirmed Philippines' upper-middle-income status

The World Bank (WB) has confirmed the status of the Philippines as an upper-middle-income country (UMIC) after its gross national income (GNI) per capita exceeded the UMIC threshold, the Department of Economy, Planning, and Development (DEPDev) announced on Wednesday.

The WB, in its latest income assessment in July, reported that the Philippines’ GNI per capita has reached $4,850, exceeding the $4,636 UMIC threshold.

The DEPDev attributed this upgrade to steady economic growth, sound macroeconomic management, and long-term structural reforms.

“The shift was underpinned by steady economic expansion, with Gross Domestic Product (GDP) growing by an average of 5.8 percent from 2021 to 2025," the DEPDev said in a statement.

"Strong performance across all industries raised GNI per capita by 8.5 percent in 2025, lifting the Philippines from the lower-middle into the upper-middle income category,” it added.

DEPDev Secretary Arsenio Balisacan said the latest development showed the resilience of the Philippine economy.

“Despite global and domestic shocks, we have relentlessly pursued inclusive growth, strengthened fundamentals, and remained on track with our development agenda,” Balisacan said.

This upgraded status is anticipated to fortify the country’s credit profile, lift investor sentiment, and open doors to higher-quality investments that create better employment opportunities for Filipinos, the department said.

While Balisacan acknowledged that certain low-interest development loans may taper off over time, they emphasized that the benefits of robust economic fundamentals and expanded market access will far exceed these losses.

“We welcome this recognition of our progress, and we commit to deepen reforms to sustain our economic development,” Balisacan said.

The chief economist also recognized the contributions of overseas Filipino workers.

“Our OFWs have played an important role in reaching this milestone. At the same time, our long-term goal is to create more high-quality jobs at home so overseas employment becomes a choice, not a necessity,” said Balisacan.

But Balisacan pointed out that the upgraded status does not downplay the country's existing economic hurdles

“We acknowledge that income disparities persist, and many continue to face economic difficulties. Our priority is to ensure that growth becomes more inclusive, and that its benefits reach all Filipinos,” Baliscan said. –Vince Angelo Ferreras/NB, GMA News