Nelson Morales

Skyline and buildings in Quezon City on January 11, 2023. Mark Demayo, ABS-CBN News

Article (news)

PH still optimistic of achieving upper middle income status before end of Marcos term

Jervis Manahan

Jessica Fenol

ABS-CBN News

MANILA — The country could still achieve its goal of achieving an upper middle income status before the end of President Ferdinand Marcos Jr&#x27;s administration despite global headwinds that pushed several multilateral firms to downgrade its growth outlook for the year, an official said. During a palace briefing, Usec. Claire Castro shared a message from Economy, Planning, and Development Secretary Arsenio Balisacan.&quot;Ibibigay ko po ang kaniyang mensahe, and I quote, “By July 2026 the World Bank will indicate whether we have met the income threshold for upper middle income status based on 2025 performance. Formal classification may require additional years of sustained results. We remain confident this will be achieved within the term of the Marcos administration. Despite geopolitical tensions and heightened uncertainty, we will stay the course in stabilizing the economy and strengthening social protection to sustain poverty reduction,&quot; Castro said.In December, the World Bank said the Philippines could achieve upper middle income status possibly by 2028. World Bank Division Director Zafer Mustafaoglu earlier said achieving the status needs at least 3 years of consistent GDP per capita and gross national income (GNI) per capita above the upper middle income threshold.According to the World Bank, upper middle income economies are those with a GNI per capita between $4,496 and $13,935. Last year, the Presidential Communications Office said the country&#x27;s GNI per capita is at $4,470 in 2024, near the threshold.Meanwhile, the palace said the government is working hard to support economic growth as many nations grapple with the impact of the war in the Middle East. &quot;So, sa ngayon po kahit ano po ang nararanasan natin ngayon dahil dulot ng gulo dito sa Middle East pinagsusumikapan po ng gobyerno na maibsan or maiwasan, mabawasan ang nararanasan natin na hirap dulot ng krisis sa Middle East. So, patuloy pa rin po ang pagpapalago ng ekonomiya,&quot; Castro said. The International Monetary Fund on Wednesday <a href="https://www.abs-cbn.com/news/business/2026/4/15/imf-lowers-philippine-growth-forecast-to-4-1-as-middle-east-war-rages-on-1201" rel="noopener noreferrer" target="_blank">lowered</a> its Philippine economic growth forecast to 4.1 percent for 2026 from the initial estimate of 5.6 percent, citing impact of the Middle East conflict and the weaker-than-expected economic growth in 2025.Meanwhile, the Asian Development Bank has also trimmed its growth outlook for the country this year while S&amp;P Global has downgraded its outlook for the country to &quot;stable&quot; from positive.Prior to this, the country has been tagged as among the fastest growing economies in the region.

According to the World Bank, upper middle income economies are those with a GNI per capita between $4,496 and $13,935.

According to the World Bank, upper middle income economies are those with a GNI per capita between $4,496 and $13,935.