The Philippines is now classified as an upper-middle-income country (UMIC) by the World Bank after its gross national income (GNI) per capita surpassed the lender’s income threshold, the Department of Economy, Planning and Development (DEPDev) announced on Wednesday.
In its latest income classification released in July, the World Bank reported that the Philippines posted a GNI per capita of $4,850 in 2025, exceeding the $4,636 threshold required for upper-middle-income economies.
The milestone fulfills one of the key economic targets of the Marcos administration and marks the country’s first upgrade to the upper-middle-income category after being classified as a lower-middle-income economy since 1987.
According to the World Bank’s historical records, the Philippines had already entered the lender’s second income group as early as 1976, when its gross national product (GNP) per capita reached $330. However, it remained under the lower-middle-income classification for nearly four decades before the latest reclassification.
DEPDev attributed the country’s upgrade to sustained economic growth, sound macroeconomic management, and long-term structural reforms.
“The shift was underpinned by steady economic expansion, with Gross Domestic Product (GDP) growing by an average of 5.8 percent from 2021 to 2025,” the agency said in a statement.
DEPDev added that strong performance across all industries contributed to an 8.5 percent increase in the country’s GNI per capita in 2025, enabling the Philippines to surpass the World Bank’s upper-middle-income threshold.
DEPDev Secretary Arsenio Balisacan said the reclassification reflects the resilience of the Philippine economy despite various global and domestic challenges.
“Despite global and domestic shocks, we have relentlessly pursued inclusive growth, strengthened fundamentals, and remained on track with our development agenda,” Balisacan said.
He said the country’s upgraded status is expected to improve its investment profile by boosting investor confidence and expanding access to financing and investment opportunities that could generate more quality jobs for Filipinos.
“We welcome this recognition of our progress and we commit to deepen reforms to sustain our economic development,” Balisacan said.
Despite the achievement, Balisacan acknowledged that income inequality and economic hardships remain significant challenges.
“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,” he said.
Aside from the Philippines, the World Bank also upgraded Vietnam, Sri Lanka, Micronesia, and Jordan to the upper middle income category in its latest income classification.
