Quezon city: The Philippines' elevation to an upper-middle income country (UMIC) proves its ability to achieve national progress, the Congressional Policy and Budget Research Department (CPBRD) head of the House of Representatives said on Saturday. The World Bank announced that the country graduated into a UMIC after reaching USD4,850 in gross national income (GNI) per capita, exceeding the USD4,636 threshold.

According to Philippines News Agency, this achievement marks a significant milestone for the nation, showcasing the continuous rise in GNI per capita, which includes income generated both domestically and internationally. CPBRD executive director Novel Bangsal emphasized this during the Saturday News Forum in Quezon City, highlighting the progress as a result of nearly four decades of efforts to enhance the country's economic standing.

Bangsal noted that the new status not only reflects the country's improved economic position but also enhances its prospects for better credit ratings. The UMIC status is anticipated to boost the Philippines' credibility in the international arena, allowing it greater access to funds from international capital markets, which are essential for further economic growth.

While attaining UMIC status is an indicator of economic progress, it may also lead to reduced access to concessional Official Development Assistance (ODA), which is typically available to low- and middle-income states. However, a nation is only removed from the ODA-eligible states list once it achieves a high-income economy status, with a GNI per capita exceeding USD14,375.