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

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.

Recto said achieving upper middle-income status is not the government's end goal, stressing that stronger economic growth must translate into better living standards.

"The true measure of success is whether every Filipino family feels the benefits. That is why we will not stop until more Filipinos rise out of poverty and their lives become easier," he said.

To sustain growth, Recto said the government will continue efforts to tame inflation, protect jobs, strengthen household purchasing power, boost consumer and business confidence, and attract more investments.

He said the administration will accelerate major infrastructure projects, continue rolling out the targeted UPLIFT program to cushion the lingering effects of the Middle East conflict, and ensure the efficient implementation of this year's national budget while finalizing the 2027 spending plan.

It will also pursue reforms to improve the ease of doing business, strengthen digital connectivity, upgrade education and workforce skills, and build resilience against climate-related risks and external shocks.