Philippines 2026 Upper Middle-Income Economy Target Remains

The government expressed confidence in meeting its income classification target.

Philippines 2026 Upper Middle-Income Economy Target Remains

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The Philippine government’s goal to elevate the country to middle-income status by 2026 is still up, Finance Secretary Frederick Go said, citing measures to boost economic growth.

Go, in an interview with journalists on Thursday, explained that the middle-income economy is defined by the World Bank based on per capita income, or the average income per person in a country.

Under the WB definition, an upper middle-income economy has a per capita income of between USD4,496 and USD13,935.

To date, the Philippines is classified as a lower middle-income economy, which, under the WB rule has a per capita income of between USD1,136 and USD4,495.

WB data released last July show that the country’s gross national product income per capita in 2024 is at USD4,470, short of USD26 to meet the benchmark for upper middle-income countries.

As part of the bid to elevate the country’s classification, Go said the economic team aims “to grow the economy, and make sure that the people, again, we go back to jobs, are earning at that per capita number.”

“So, our strategy is to grow the economy and make sure that no one is left behind. Then, when you hurdle that rate, you become an upper-middle income economy,” he said.

Go said they are keeping the target to achieve this goal by 2026, amidst the challenges.

“You know, one of the problems is, it’s defined in dollars. So even if we grow in pesos, if the foreign exchange rate works against us, that’s the problem. But to answer your question directly, yes, I am hopeful. Because I believe our economy will grow and I shouldn’t make foreign exchange predictions,” he added. (PNA)