More Filipinos could benefit from stronger job creation, higher incomes, and increased investment after the Philippines officially graduated to upper-middle-income country status.

Executive Secretary Ralph G. Recto said Thursday the new classification reflects the country’s stronger economic fundamentals and is expected to encourage more businesses to invest and expand in the country, strengthening its long-term growth prospects.

“This is more than just a title. It means our economy is growing, more jobs are being created, our fellow Filipinos are earning higher incomes, and more investors are placing their confidence in the Philippines,” he said.

As the country transitions to upper middle-income status, Recto said the government will rely less on concessional financing by expanding the use of public-private partnerships, deepening domestic capital markets, and tapping market-based financing sources to sustain infrastructure and development spending.

The World Bank upgraded the Philippines to the upper-middle-income category after its gross national income (GNI) per capita reached $4,850 in 2025, surpassing the $4,636 threshold.

Broad-based economic expansion

The reclassification was driven by broad-based economic expansion, with the economy posting average annual gross domestic product growth of 5.8 percent over the past five years.

GNI per capita measures the average income earned per person from domestic production and income from abroad and is used by the World Bank to classify economies by income level.

The Philippines had remained a lower middle-income economy since 1987 before joining regional peers China, Malaysia, Thailand, Indonesia and Vietnam in the upper middle-income group.