The Philippines will be on track to achieve upper middle-income status by 2025 if the country's gross national income (GNI) per capita reaches 6.7 percent growth, National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan said.
On the sidelines of the launch of National AI Strategy Roadmap 2.0 on Wednesday, Baliscan said the country's GNI per capita reached $4,230 in 2023, near the global threshold of $4,500.
The World Bank classifies economies based on Gross National Income (GNI) per capita. Upper-middle-income economies have a GNI per capita between $4,466 and $13,845. The Philippines is currently classified as a lower-middle-income country.
Last week, Balisacan said the upper-middle income status could be achieved in “late 2025 or early 2026."
The NEDA chief also mentioned that the goal of elevating the country's World Bank classification is "within reach and achievable."
“Together with the lower threshold to become an upper middle income, if you look at that growth rate, it’s only 6.7 percent," Balisacan said.
"The report actually that was just launched by World Bank actually proved me, I mean, it's consistent with what I was sharing with you," Balisacan added.
Since around 1989, the Philippines has been classified as a lower middle-income country, while its ASEAN counterparts have made significant progress.
Indonesia reached the upper-middle income category with a GNI per capita of $4,580 in 2022 and $4,870 in 2023. Malaysia and Thailand were already in the upper-middle income category, with GNIs per capita of $11,970 and $7,180, respectively, in 2023.
Among the ASEAN countries besides the Philippines, Vietnam, Cambodia, and Laos also remained in the lower middle-income bracket. However, Vietnam surpassed the Philippines in 2022 by increasing its GNI per capita to $4,010 from $3,590, whereas the Philippines had a GNI per capita of only $3,950.