Marcos hails raised PH income status as ‘a vote of confidence’

President Ferdinand Marcos Jr., in a video posted on social media on Thursday, July 2, 2026, said the Philippines’ new status as an upper-middle-income country is an affirmation of the effectiveness of the government’s economic policies and a validation of the resilience of Filipinos. —Screengrab from Bongbong Marcos/Facebook

MANILA, Philippines — President Marcos on Thursday touted the country’s elevation to upper-middle income status as a vote of confidence in its future that would translate to more investments and businesses, better quality jobs, and additional opportunities for Filipinos.

“After nearly four decades as a lower-middle-income country since 1987, this milestone affirms that the economic policies that we have pursued over the past four years have been effective,” Mr. Marcos said in a prerecorded video statement after arriving in Vancouver for a four-day official visit.

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“Our steady economic growth, broadly stable currency, and long-term reforms have strengthened our economy even amid global uncertainties,” he added.

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The President said the feat validates the progress that the country has made and the resilience of the Filipino people.

READ: What an upper-middle-income status means for the Philippines

“It is also a vote of confidence in our country’s future,” he said. “This is worth celebrating because economic progress is not meant to stay on paper. It is meant to open doors, put food on the table, and give every Filipino the chance to build a better life.”

Not the finish line

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.

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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.

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

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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.

Executive Secretary Ralph Recto said reaching upper-middle income status should not be the country’s finish line: “The true measure of success is whether every Filipino family feels this upper-middle income status. That is why we will not stop until more Filipinos are lifted out of poverty and their lives become easier.”

Inflation, jobs

Recto said the government’s priorities remain clear: bring down inflation, protect jobs, strengthen purchasing power, boost consumer and business confidence, and attract even more investments.

To do this, the government will accelerate the implementation of major infrastructure projects in the second half of the year, continue rolling out a more targeted Uplift (Unified Package for Livelihoods, Industry, Food, and Transport) program to cushion the lingering effects of the Middle East conflict, efficiently execute the 2026 national budget, and finalize a responsive 2027 national budget.

The new classification is expected to strengthen the country’s credit profile, boost investor confidence, and expand access to financing and higher-quality investments that generate better jobs, according to Department of Economy, Planning, and Development Secretary Arsenio Balisacan.

While some concessional Official Development Assistance (ODA) may decline over time, Balisacan said the gains from stronger fundamentals and improved market access are expected to outweigh these adjustments.

From ODA to PPP

The new status will not automatically stop ODA, but it will gradually change the type, cost, and volume of aid the country can receive.

The country may begin losing access to concessional loans, subsidized loans and grants from the usual development partners like the World Bank and the Asian Development Bank. But, Balisacan said, economic planners have been preparing for this eventuality as early as 2023.

Development partners may increasingly treat the Philippines as a stronger investment destination rather than primarily an aid recipient.

Based on the 2024 ODA portfolio, Japan continued to be the country’s biggest partner with $13.23 billion in active commitments, supporting 82 loans and grants.

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To prepare for the reduced access to ODA, Balisacan said, the government is working on making the public-private partnership (PPP) system “more robust.” /cb