The Philippines has been reclassified by the World Bank as an upper-middle-income economy. The change reflects a gross national income per capita of $4,850, exceeding the $4,636 threshold.
The World Bank announced the update on July 1, 2026, based on 2025 data. The Philippines was one of five economies moving from lower-middle to upper-middle income status, alongside Jordan, Micronesia, Sri Lanka, and Vietnam.
Department of Economy, Planning, and Development Secretary Arsenio Balisacan credited broad-based growth. “This confirms the resilience of the Philippine economy,” he said. The economy expanded at an average of 5.8% annually from 2021 to 2025.
The World Bank noted that the reclassification serves as a macroeconomic marker only. It does not address ongoing challenges such as inflation, underemployment, or income distribution. The new classifications will remain in effect until June 2027.
