The country has finally achieved its ambition to become an upper-middle income economy, following World Bank’s reclassification, citing its broad-based economic expansion.
“The Philippines achieved its reclassification through broad-based expansion,” World Bank said late Wednesday.
“GDP [gross domestic product] grew at an average of 5.8% per year over five years, reflecting gains across all major industries, not a single sector boom, but an economy-wide shift,” it added.
Data showed that the Philippines’ gross national income (GNI) per capita hit $4,850 in 2025, reaching the $4,636 to $14,375 upper-middle income threshold.
Socioeconomic Planning Secretary Arsenio Balisacan said this “confirms the resilience of the Philippine economy.”
“Despite global and domestic shocks, we have relentlessly pursued inclusive growth, strengthened fundamentals, and remained on track with our development agenda,” Balisacan said.
The Philippines was among the economies upgraded to upper-middle-income status, alongside Vietnam, Sri Lanka, Micronesia, and Jordan.
Balisacan, however, acknowledged that the country still faces challenges despite the new classification.
“We acknowledge that income disparities persist, and many continue to face economic difficulties,” Balisacan said.
“Our priority is to ensure that growth becomes more inclusive, and that its benefits reach all Filipinos,” he added.
