Finance Secretary Frederick Go said the Philippines remains on [a]steady progress to reach upper middle-income (UMIC) status by 2026, citing expected economic recovery and sustained growth under the Marcos administration.
In an interview, Go said the government’s economic team is focused on expanding the economy and generating jobs to raise the country’s gross national income (GNI) per capita to meet the World Bank’s UMIC threshold.
“Our strategy is to grow the economy and make sure that no one is left behind,” Go said, adding that surpassing the income benchmark would qualify the country as an upper middle-income economy.
The World Bank earlier lowered its growth projections for the Philippines for this year and 2026 but still expects an economic rebound, according to senior economist Jaffar Al-Rikabi, who said the country remains close to meeting the UMIC cutoff.
However, Al-Rikabi noted that the Philippines must exceed the threshold for three consecutive years before formal reclassification, meaning official UMIC status could only be granted by 2028 even if the benchmark is met earlier.
Data released in July showed the country’s GNI per capita reached a record $4,470 in 2024, still $26 short of the $4,496 threshold, which is adjusted annually for inflation.
Go identified the peso’s continued depreciation as a key challenge, noting that income classification is measured in dollars rather than pesos.
“One of the problems is that it’s defined in dollars. So even if we grow in pesos, if the foreign exchange rate works against us, that’s the problem,” he said.
Despite this, Go said he remains optimistic about the country’s economic prospects, expressing confidence that growth will continue even amid currency pressures.
“I am hopeful. I believe our economy will grow,” he added.
Written by Steven Bryle Tumandan, Insight PH
Steven Bryle Tumandan, Insight PH is a dedicated campus journalist and contributor. Their insightful writing sparks meaningful conversations and keeps the community informed.
