Malacañang on Monday said any possible effect of the Philippines’ new upper-middle-income country status on loans and grants may only be felt after around three years.
Palace Press Officer Claire Castro said the shift in income classification is not expected to immediately affect the country’s access to multilateral loans or preparations for the 2027 national budget.
“Ibig po nating sabihin, kung may papataw man, magbabago ang rates, hindi pa po ito mararamdaman sa loob ng tatlong taon,” Castro said during a Palace briefing.
Citing consultations with Finance Secretary Frederick Go, Castro said the Department of Finance has yet to finalize a list of grants or loans that may be affected by the country’s new income classification.
She said Go also indicated that any possible impact would be “miniscule.”
“The effect on multilateral loans will not take effect immediately. Most of them have a period to see if we maintain the status for three years before there is an effect on loan rates, and the effect is very minimal and only affects a very few. So for 2026 or 2027, there will be no effect, and if ever there is, it will be very minuscule,” Castro quoted Go as saying.
The World Bank last week classified the Philippines as an upper-middle-income country after its gross national income per capita reached US$4,850 in 2025, exceeding the US$4,636 threshold.
President Ferdinand Marcos Jr. earlier said during his visit to Canada that the government was already anticipating possible implications of the country’s higher income status on its access to concessional development financing.
Economists and analysts have warned that the Philippines may eventually face reduced access to some grants and official development assistance, which are often extended to low-income and lower-middle-income economies.