Philippines likely to be upper middle-income country by 2026

In October, the World Bank revised its GDP growth forecast for the Philippines, lowering it to 5.6% from the previous projection of 6% in June.

The Philippines is expected to see an increase in income per person over the next few years to attain the status of an upper middle-income country by 2025 or 2026, a World Bank official has said.

The specific year would depend on the extent of economic growth in the upcoming years, Ndiamé Diop, the World Bank Country Director for the Philippines, said during an interview at the BusinessWorld Forecast 2024 economic forum last week.

Diop said the Philippines was on track to achieve upper middle-income status in just a few years, in alignment with the government's goal, particularly the Marcos administration's target for the country to reach this status by 2025.

The classification of an upper middle-income country is generally based on having a gross national income (GNI) per capita in $4,466-$13,845 range.

Also Read: India allows some rice shipments to Philippines, other importing countries

The World Bank categorises the Philippines as a lower middle-income country with a GNI per capita of $3,950. Manila has held this classification since 1987, which is the earliest data available from the World Bank, the BusinessWorld report said.

Also Read: Powerful earthquake shakes southern Philippines, causing ceilings to fall at malls

According to Diop, once the Philippines achieves upper middle-income status, the challenge would be to excel in various development indicators to present a positive overall profile.

The Philippine Development Plan (PDP) would play a vital role in supporting the country's endeavour to attain upper middle-income status.

In October, the World Bank revised its gross domestic product (GDP) growth forecast for the Philippines, lowering it to 5.6 percent from the projection of 6 percent in June.