The Marcos administration said it will try its best to elevate the Philippines to an upper-middle-income (UMIC) economy, following a World Bank report showing the country remains classified as lower-middle-income (LMIC) based on its latest gross national income (GNI) per capita.
“Okay, we admit that we have not yet made progress towards upper-middle-income status, but the economy is making good progress due to the improving gross national income per capita starting in 2024,” Undersecretary Claire Castro said Thursday during a Palace briefing.
Earlier, Finance Secretary Ralph Recto said the Philippines is on track to achieve UMIC status by the end of 2025 or 2026.
To attain UMIC classification, a country must have a GNI per capita between $4,496 and $13,935.
The Philippines’ GNI per capita last year was $4,470—falling just a few dollars short of the World Bank benchmark.
Efforts to improve the economy
Castro vowed to improve the economy to meet the UMIC threshold.
“We will try very hard to attain this amid the economic turmoil that has been happening globally. We will double our efforts to achieve the UMIC stance, as the President and the economic team remain positive on this,” she said in Filipino.
A report from the government-run Philippine News Agency, quoting Philippine Institute for Development Studies senior research fellow John Paolo Rivera, said a shift to UMIC status by 2025 remains possible, although the window is narrowing.
Rivera said that if the country sustains strong economic growth above 6 percent, controls inflation, and maintains a stable exchange rate, the required per capita income threshold can still be met.
"Key drivers will include resilient domestic consumption, improved government spending efficiency, steady remittances, and gains from services exports like IT-BPM and tourism," Rivera said.
For his part, Rizal Commercial Banking Corporation chief economist Michael Ricafort said the country could reach UMIC status by 2026 or 2027.