The Philippines has officially entered the World Bank’s upper-middle income category, a milestone the Department of Economy, Planning, and Development said reflects the country’s sustained growth, sound macroeconomic management, and long-term structural reforms.
DEPDev said the World Bank confirmed the country’s upgrade in its latest income assessment, with the Philippines posting a gross national income per capita of $4,850, above the $4,636 threshold for upper-middle-income economies.
The agency said the upgrade was supported by steady economic expansion, with gross domestic product growing by an average of 5.8 percent from 2021 to 2025.
Strong performance across all industries also pushed the country’s GNI per capita higher by 8.5 percent in 2025, enabling the Philippines to move up from the lower-middle income category.
“This confirms the resilience of the Philippine economy,” DEPDev Secretary Arsenio M. Balisacan said.
“Despite global and domestic shocks, we have relentlessly pursued inclusive growth, strengthened fundamentals, and remained on track with our development agenda,” he added.
DEPDev said the new classification is expected to strengthen the country’s credit profile, improve investor confidence, and expand access to financing and higher-quality investments that can create better jobs for Filipinos.
While some concessional Official Development Assistance may decline over time, Balisacan said the benefits of stronger economic fundamentals and improved market access are expected to outweigh the adjustments.
“We welcome this recognition of our progress, and we commit to deepening reforms to sustain our economic development,” Balisacan said.
He also credited overseas Filipino workers for helping the country reach the milestone, noting that their earnings abroad form part of the country’s GNI.
“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.”
Balisacan said, however, that the new income classification does not mean that economic hardships have disappeared.
“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,” Balisacan explained.
The achievement comes as the Philippines serves as ASEAN Chair for 2026, giving the country a platform to showcase its economic progress, deepen regional partnerships, and attract investments that support long-term growth and development.