Executive Secretary Ralph G. Recto welcomed the Philippines’ official rise to upper-middle-income country status, saying the milestone reflects stronger economic fundamentals under the Marcos Jr. administration and could lead to more jobs, investments, and opportunities for Filipinos.
“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,” Recto said.
The World Bank said the Philippines’ ascent to upper middle-income status was driven by broad-based economic expansion, with the economy posting an average annual gross domestic product growth of 5.8 percent over the past five years.
According to Recto, this shows that economic growth has been supported by multiple industries rather than by a single sector.
Based on estimates by the Department of Economy, Planning, and Development, the country’s gross national income per capita reached USD 4,850 in 2025, surpassing the World Bank’s upper middle-income threshold of USD 4,636.
Gross national income per capita measures the economic output per citizen, including both domestic and international earnings. A higher GNI per capita is considered one indicator of an improved standard of living.
Recto, however, stressed that achieving upper-middle-income status is not the end goal.
“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 said.
To sustain the country’s growth momentum, Recto said the government will continue to prioritize lowering inflation, protecting jobs, strengthening purchasing power, boosting consumer and business confidence, and attracting more investments.
He said the government will accelerate the implementation of major infrastructure projects in the second half of the year, continue the rollout of 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 pursue 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, Recto said 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.