MBC: PH to hit upper-middle income next year

The Makati Business Club (MBC), one of the country's most prominent business organizations, expressed confidence that the Philippines will reach upper-middle-income country status by next year and achieve high-income status in the long term through strategic reforms that would spur economic growth.

- BY DEXTER BARRO II

Based on the World Bank's classification of income levels, the Philippines is currently a lower middle-income country with a gross national income (GNI) per capita of $4,230 in 2023, a seven-percent increase from $3,950 in 2022.

The Washington-based multilateral lender designates an economy as lower middle-income if the GNI per capita is between $1,146 and $4,515.

Meanwhile, upper middle-income status applies to countries with a GNI per capita of $4,516 to $14,005.

The government was initially optimistic about reaching this higher income level in 2024 but has since moved the goalpost to 2026 due to concerns about the global economy.

Last month, the United States (US) announced sweeping tariffs on all its trading partners, with the Philippines facing a 17-percent reciprocal tariff.

Despite these headwinds, MBC trustee Jose Cuisia Jr. said he expects the country to attain upper-middle-income status next year on the back of robust economic productivity.