Philippine economic managers hailed the World Bank's upgrade of the country to upper-middle-income status, saying it reflects the Marcos administration's prudent macroeconomic policies, even as some economists cautioned that gross national income (GNI) does not necessarily capture how wealth is distributed among Filipinos.

In separate statements, Finance Secretary Frederick Go and Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona Jr. said the reclassification underscores the country's strong economic fundamentals.

“The Philippines' transition to an upper-middle-income country is an affirmation of the reforms and policies that the government has consistently pursued to strengthen our economic fundamentals and create more opportunities for our people. Now, we must continue to build on these gains so that the benefits of economic development reach more Filipinos,” Go said.

“On the part of the BSP, it underlines the importance of managing inflation to encourage investment and protect the purchasing power of Filipino households; maintaining adequate international reserves to ensure confidence; ensuring banks are solid and able to support economic growth; and modernizing payment systems to provide businesses and consumers with fast and secure transfers,” Remolona said.

Based on estimates from the Department of Economy, Planning, and Development (DEPDev), the country's GNI per capita reached $4,850 in 2025, exceeding the World Bank's upper-middle-income threshold of $4,636.

The World Bank said the Philippines' ascent to upper-middle-income status was driven by broad-based economic expansion, with the economy posting average annual gross domestic product (GDP) growth of 5.8 percent over the past five years, indicating that growth has been diversified across multiple sectors.

However, some economists have argued that GNI is a measure of average income and does not accurately reflect wealth distribution. Data from the World Inequality Database showed that in 2024, the top 10 percent of income earners accounted for 45.4 percent of total income, while the bottom 50 percent accounted for just 14.3 percent.

“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,” DEPDev Secretary Arsenio Balisacan said in his own Thursday statement.

The country's economic managers recently lowered the 2026 GDP growth target to 3.5 to 4.5 percent from the previous 5 to 6 percent range, citing the national energy emergency and the lingering effects of the flood control scandal.

For his part, President Ferdinand R. Marcos Jr. described the World Bank upgrade as a vote of confidence in the Philippine economy despite weakening business and consumer sentiment brought about by the Middle East conflict and the graft controversy.

“Greater confidence means more investments. More investment means more businesses, better-quality jobs, and more opportunities for Filipino families. This is worth celebrating because economic progress is not meant to stay on paper. It is meant to open doors, put food on the table, and give every Filipino the chance to build a better life,” he said.