VANCOUVER, Canada — President Ferdinand Marcos Jr. said Thursday (Friday in Manila) that he was not worried about the Philippines' potential loss of certain developmental grants after the World Bank reclassified the country as an upper middle-income economy.
The President said he viewed the transition not as a loss, but as a sign of economic confidence that would attract more direct investments.
"I do not worry, we were discussing this earlier today, and I don't think that it will lead to an increase in interest rates for loans, for example, but we do believe the effect will be on the grants that are given," Marcos said in a joint press conference with Canadian Prime Minister Mark Carney at Vancouver Convention Center.
"But nonetheless, that means in a way that can be interpreted as the World Bank saying, ‘you know, we no longer need that, and we will replace that with investment.’ And that, I think, is a very, very important development for the Philippines and its economy," he added.
Marcos said his administration has worked very hard in the last four years to make the Philippines a more investment-friendly destination for both local and foreign investors.
“And that it derived from that was our very early decision, very early on in my administration, that the private sector is recognized as a full partner in national development,” the President said.
“And that has led us to the FTA (free trade agreement) now that we are talking about with Canada, and to the other 20-plus FTAs that we have been able to come and sign in the last four years."
Despite the recent achievement, the President said there are still a lot of work to do in terms of identifying sectors in the economy and government that need to be modified and modernized.
Carney agreed with Marcos on the importance of the private sector in development.
“And if I may suggest as well, it is also the recognition of the importance of the private sector as a partner in overall development,” the Canadian leader said.
Carney underscored the importance of the rule of law, respect for human rights, and transparency as important elements for economic development.
“That’s part of the positive aspect. Agreements such as we’re moving forward on today, including the prospect of a free trade agreement, are reinforcing all those factors,” he said.
In its latest income assessment released on Wednesday, the World Bank reported that the Philippines’ gross national income (GNI) per capita in 2025 reached $4,850, exceeding the $4,636 threshold for upper-middle income status.
GNI per capita measures the economic output per citizen, consisting of both domestic and international earnings.
A higher GNI per capita is one indication of increased standard of living.
The Philippines originally expected to reach this status by 2024, but was hampered by the economy’s sharp contraction in 2020 due to the Covid-19 pandemic.
The downturn and subsequent economic effects, including peso depreciation, pushed the timeline to 2025, and further to 2026.
