PH economic status rises to upper-middle-income

Marcos says upgrade validates administration policies

- By BEN ARNOLD DE VERA, BETHEENA UNITE, and CHINO LEYCO

The Philippines achieved its longstanding goal of attaining upper-middle-income-country (UMIC) status with a record-high gross national income (GNI) per capita in 2025, an upgrade described by President Marcos as a validation of the economic policies pursued by his administration and a "vote of confidence" in the country's future.

The World Bank announced on Wednesday night, July 1 (Manila time), that the Philippines, Jordan, Micronesia, Sri Lanka, and Vietnam joined the ranks of UMICS, with their respective GNI per capita ranging from $4,636 to $14,375 in 2025. This is the income range for UMICs for fiscal year (FY) 2027, covering the period from July 1, 2026, to June 30, 2027.

Manila Bulletin had reported earlier that the Philippines' GNI per capita rose to a record $4,850 in 2025 from $4,470 in 2024, based on World Bank documents published earlier this week.

GNI measures the total income earned by a country's residents, both domestically and abroad, making it a broader measure of economic performance than gross domestic product (GDP), which accounts only for domestic output.

Based on separate World Bank Group (WBG) DataBank figures seen by Manila Bulletin, the Philippines' GNI, using the Atlas method, rose to $566.8 billion in 2025 from over $518 billion in 2024.

The country had been stuck in lower-middle-income-country (LMIC) status since at least FY 1989.

Broad-based expansion

"The Philippines achieved its reclassification through broad-based expansion. GDP grew at an average of 5.8 percent per year over five years, reflecting gains across all major industries, not a single sector boom, but an economy-wide shift," the World Bank said in a blog post.

However, the Philippines' 2025 GNI per capita remained below Vietnam's, which climbed to $4,970 from $4,490 a year ago. As a result, the income gap between the two countries widened sixfold from just $20 in 2024 to $120 in 2025.