The Philippines has officially attained upper-middle-income country (UMIC) status under the World Bank classification, a milestone that an economist said could enhance the country’s international standing and improve its prospects for a better credit rating.

“The only advantage of reaching or attaining UMIC status is that it likely improves our standing in the international arena. It enhances our credibility and improves our prospects of obtaining a better credit rating,” Novel Bangsal said during the Saturday News Forum.

Bangsal, economist and executive director of the House of Representatives’ Congressional Policy and Budget Research Department, said the country’s attainment of UMIC status should be viewed as both encouraging and cautionary.

“This is also a significant achievement for us. It’s really a milestone because it did not happen in just one day or one year. It is the culmination of about four decades of efforts to improve our economic standing,” he said.

According to the World Bank, the Philippines attained UMIC status after recording a gross national income (GNI) per capita of $4,850 in 2025, surpassing the upper-middle-income threshold of $4,636.

Bangsal noted that the country had come close to reaching the threshold in previous years but narrowly missed the required income level.

“This could have happened earlier, but we fell short by about 20 or 30 U.S. dollars last year,” he said.

The House-based economist also underscored the significance of the country’s new status for overall national development, saying it indicates that the Philippines has made economic progress over time.

“So, it simply shows that over time, our GNI per capita has been increasing, meaning the income produced here and abroad,” Bangsal said.

“That serves as a measure of the national average, so to speak. It reflects the overall picture,” he added.

However, Bangsal emphasized that attaining UMIC status does not necessarily reflect the socioeconomic conditions of individual Filipino households.

He stressed that higher GNI per capita figures do not automatically translate into lower poverty rates or improvements in income distribution and equity.

“The increase in the country’s GNI per capita does not automatically mean there have been improvements in poverty levels or in equity dimensions affecting households,” Bangsal said.