Manila: Government reforms to strengthen the country's economic fundamentals helped the Philippines achieve its upper-middle income country (UMIC) status, Finance Secretary Frederick Go said, noting that the government will continue its efforts to improve Filipinos' lives. "The Philippines' transition to an upper middle-income country is an affirmation of the reforms and policies that the government has consistently pursued to strengthen our economic fundamentals and create more opportunities for our people," Go said in a statement Thursday. "Now, we must continue to build on these gains so that the benefits of economic development reach more Filipinos," he added.
According to Philippines News Agency, the World Bank's latest income assessment released late Wednesday indicated that the Philippines' gross national income (GNI) per capita reached USD4,850, surpassing the USD4,636 threshold for UMIC status. The World Bank categorizes UMIC economies as those with a GNI per capita ranging between USD4,636 and USD14,375 for fiscal year 2027. GNI per capita is a measure of the economic output per citizen, including both domestic and international earnings, and a higher GNI per capita suggests greater economic prosperity and an improved standard of living.
In a separate statement, Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona Jr. described the Philippines' shift to upper-middle income status as a significant milestone reflecting years of steady economic progress. "It signals that the country's productive capacity and incomes have improved over time," he stated. Remolona emphasized the importance of the efforts to maintain macroeconomic stability and continue structural reforms by the National Government.
Remolona further highlighted the crucial role of the BSP in this transition, noting the importance of managing inflation to boost investment and protect the purchasing power of Filipino households. He also mentioned maintaining adequate international reserves to ensure confidence, ensuring the solidity of banks to support economic growth, and modernizing payment systems to provide businesses and consumers with fast and safe transfers.
