The new classification is expected to generate better jobs for Filipinos at the extreme.
On Wednesday, July 1, the World Bank reported that the Philippines’ latest assessment shows that the country has reached upper-middle income (UMIC) status.
This comes after it attained the gross national income (GNI) per capita of USD 4,850, exceeding the USD 4,636 threshold to be considered as a UMIC.
In his message, President Ferdinand Marcos Jr. on Thursday welcomed the Philippines’ official transition to the said status and noted that thos milestone affirms the effectiveness of the government’s economic policies implemented over the four years of his term.
The said shift was also carried by steady economic expansion in the country, with Gross Domestic Product (GDP) growing by an average of 5.8 percent from 2021 to 2025. Strong performance across all industries also raised GNI per capita by 8.5 percent in 2025.
“After nearly four decades as a lower-middle-income country since 1987, this milestone affirms that the economic policies we have pursued over the past four years have been effective,” Marcos said in a video message during his Official Visit to Canada.
He added, “Our steady economic growth, broadly stable currency and long-term reforms have strengthened our economy even amid global uncertainties. It validates the progress we have made and the resilience of the Filipino people.”
The government also views this as a “vote of confidence” in the country’s future, which can help generate more investment, that will ripple through local industries with more businesses, better-quality jobs, and more opportunities for Filipinos.
“Economic progress is not meant to stay on paper,” added the President, who also emphasized that it should also mean opening doors, putting food on the table, and giving every citizen the chance to build a better life.
Marcos also vowed to continue working “until every family feels the benefits of our country’s progress.”
In a separate statement, the Department of Economy, Planning, and Development (DEPDev) said the country’s UMIC status was driven by sustained growth, sound macroeconomic management, and long-term structural reforms.
The Department also said that it expects the new classification to strengthen the country’s credit profile, which will boost investor confidence, and expand access to financing and higher-quality investments that generate better jobs for Filipinos.
DEPDev 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.”
“We welcome this recognition of our progress and we commit to deepen reforms to sustain our economic development,” Balisacan furthered.
The DEPDev chief also acknowledged the contribution of overseas Filipino workers (OFWs), whose earnings abroad form part of the country’s GNI.
“Our OFWs have played an important role in reaching this milestone. At the same time, our long-term goal is to create more high-quality jobs at home so overseas employment becomes a choice, not a necessity.”
However, it was noted that the new classification does not diminish ongoing challenges, noting its priority is to ensure that growth becomes more inclusive and that it benefits all Filipinos.
“We acknowledge that income disparities persist, and many continue to face economic difficulties. Our priority is to ensure that growth becomes more inclusive, and that its benefits reach all Filipinos,” Balisacan explained.
The achievement also coincides with the Philippines’ ASEAN Chairship for 2026, which the government views as one that provides the country with an “important platform to showcase its economic progress, strengthen regional partnerships, and attract investments that support long-term growth and development.“
The DEPDev chief also noted that while some concessional Official Development Assistance (ODA) may decline over time, gains from stronger fundamentals and improved market access are expected to outweigh these adjustments.
With the new classification, The Philippines has joined the likes of Jordan, Micronesia, Sri Lanka, and Vietnam, which all moved from low-middle income to upper-middle income country status.