Recto cheers PH upgrade to upper middle-income status

@abris_ej

MANILA, Philippines – Executive Secretary Ralph G. Recto welcomed the Philippines’ elevation to upper middle-income country status, saying the milestone reflects stronger economic fundamentals and creates more jobs, investments and opportunities for Filipinos.

In a statement on Thursday, Recto said the World Bank’s new classification was more than a title, saying it reflects an economy generating jobs, raising incomes and attracting investor confidence.

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READ: PH attains ‘upper middle income’ rank – World Bank

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The World Bank attributed the country’s ascent to broad-based economic growth, with the Philippines posting average annual gross domestic product growth of 5.8 percent over the past five years.

Estimates from the Department of Economy, Planning and Development showed the country’s gross national income (GNI) per capita reached $4,850 in 2025, above the World Bank’s upper middle-income threshold of $4,636.

GNI per capita measures income per citizen, including earnings at home and abroad, and is a common gauge of living standards.

Still, Recto said the promotion was not the end goal.

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“The true measure of success is whether every Filipino family actually feels its benefits. That is why we will not stop until more Filipinos are lifted out of poverty and their quality of life improves,” he said in Filipino.

To sustain growth, Recto said the government would focus on easing inflation, protecting jobs, strengthening purchasing power, boosting consumer and business confidence, and attracting more investments.

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READ: Palace: Uplift strategy helps bring down inflation rate

Meanwhile, he said the administration would fast-track major infrastructure projects in the second half, continue the targeted Uplift program to cushion the lingering effects of the Middle East conflict, efficiently implement the 2026 national budget and finalize the 2027 spending plan.

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The Philippines now joins regional upper middle-income economies such as China, Malaysia, Thailand, Indonesia and Vietnam. INQ