The Philippines is on the verge of achieving upper middle-income country (UMIC) status and is setting its sights on further economic milestones, according to Executive Secretary Ralph Recto. 

Recto recently told business leaders that the country recorded a gross national income (GNI) per capita of USD 4,470 in 2024 — just USD 26 short of the USD 4,496 threshold for UMIC status. 

Recto likened the gap to “roughly the cost of five cups of coffee” and said World Bank projections indicate the Philippines is expected to cross the benchmark this year, reaching USD 6,119 per capita by 2029.

He then emphasized that attaining UMIC status is only a milestone, not the finish line, and that further reforms and investments are crucial to sustaining growth.

“Our strong fundamentals, disciplined fiscal management, and a bold reform agenda will push us forward. Above all, there is no deficit in our resolve,” he said. He added that “clean, credible, and accountable governance” remains central to boosting investor confidence.

The Executive Secretary also highlighted the P6.793-trillion 2026 national budget, which includes historic-high allocations for education, healthcare, agriculture, and social protection. 

An additional P1.3 trillion is earmarked for the “Build Better More” program to modernize transportation and ICT infrastructure, creating jobs and improving regional connectivity. Recto noted that local governments will be tapped to help identify and implement projects. 

He also pointed to structural reforms aimed at making the Philippines an investment hub, including streamlining merger reviews, cutting regulatory red tape, expanding digitalization, and ramping up privatization through the Public-Private Partnership (PPP) framework.

On trade, Recto cited the recently signed Comprehensive Economic Partnership Agreement with the United Arab Emirates as a model for expanding the country’s export markets.

The executive Secretary noted that a favorable macroeconomic environment — including low and stable inflation, a young workforce, and a well-capitalized financial system — underpins these reforms.

“With all these in place, robust private sector participation will drive the country’s next phase of growth. And that is where you can please come in. If you join us, we secure wins that are mutual and that multiply,” he said, inviting business leaders to take part in the Philippines’ growth trajectory.