In his first State of the Nation Address in 2022, President Ferdinand Marcos Jr. boldly declared that the Philippines aimed to become an upper middle-income country (UMIC) by 2024. It was an ambitious but motivating target—one that galvanized policy and economic planning. That aspiration remains within reach, even if slightly delayed.

According to the latest data from the World Bank, the Philippines’ gross national income (GNI) per capita has now reached $4,470—just $26 short of the UMIC threshold of $4,496. With strong momentum in 2024 and continued growth in 2025, the country stands poised to finally cross that long-sought threshold, possibly by early 2026.

Finance Secretary Ralph Recto, reacting to the latest figures, expressed optimism that this milestone will be achieved “sooner than later,” thanks to prudent fiscal management and sustained public investment. Socioeconomic Planning Secretary Arsenio Balisacan offered a tempered but determined outlook: “Reaching the UMIC level requires not just faster growth, but broader, more inclusive growth that uplifts every Filipino.”

Their assessments are both realistic and instructive. To make the transition truly meaningful, the Philippines must do more than surpass a statistical marker—it must deliver sustained, inclusive, and equitable progress.

First: Deepen industrial and manufacturing growth. Robust manufacturing, especially in electronics, food processing, and industrial components, drives productivity and provides stable, better-paying jobs. These create ripple effects across supply chains and regional economies, helping lift workers and communities out of poverty.

Second: Invest in infrastructure that connects and empowers. The Build Better More program has made significant strides. But to catalyze UMIC-level development, we need greater focus on rural infrastructure, digital connectivity, and efficient logistics—especially for underserved regions where growth has lagged behind.

Third: Elevate human capital and innovation capacity. Quality education and industry-aligned skills training are indispensable. Research and development, science and technology, and workforce upskilling must be prioritized to transition into a high-value, innovation-led economy.

Fourth: Strengthen the investment climate and institutional efficiency.

As Secretary Recto emphasizes, stable macroeconomic management and transparent public spending are essential. For Secretary Balisacan, the key lies in a policy environment that attracts long-term private investment, reduces red tape, and ensures regulatory consistency.

Fifth: Make growth inclusive and socially protective. Economic growth must reduce poverty and inequality. Conditional cash transfers, universal health care, housing for the urban poor, and programs to help farmers and fisherfolk must continue—ensuring that no Filipino is left behind in the march toward prosperity.

Sixth: Build fiscal resilience and domestic resource strength. When the country finally attains UMIC status, it ceases to be eligible for concessional loan rates. This underlines the importance of enhanced tax efficiency, sustainable debt management, and sound public finance as vital components of sustainable economic growth.

The Marcos administration’s 2022 pledge was ambitious. Today, with GNI per capita at $4,470, the goal is more than a distant aspiration—it is a near reality. But true progress lies not just in numbers, but in lives improved.

Achieving upper middle-income status can unlock a new era of confidence and capacity. It must translate into jobs, services, security, and dignity—especially for the millions still below the poverty line. As we near the goal post, let us ensure that the fruits of progress are shared equitably by all Filipinos.