Forty percent of Filipinos believe the economy has improved this year, the largest share of any sentiment group, yet a growing number of middle-class individuals expect to slip down the socio-economic ladder over the next five years.

Peak Reinsurance Co. Ltd. reported that while 39 percent of surveyed Filipinos see a slight improvement in the national economy this year, and about half expect a gradual recovery through 2026, long-term personal financial confidence is wavering.

The findings are part of a study by the Hong Kong-based firm focusing on middle-class perspectives across seven Asian markets.

Negative sentiment remains a fixture of the local outlook, as 21 percent of respondents believe the economy worsened significantly over the past 12 months, slightly exceeding the share of those who saw robust improvement.

However, expectations for 2026 are turning more optimistic. Roughly 28 percent of respondents anticipate strong gross domestic product growth (GDP), more than double the 12 percent who maintain a downbeat outlook on output.

Peak Re noted that the Philippines and Thailand recorded the most significant jumps in year-ahead sentiment among the markets surveyed, which also included China, India, Indonesia, Malaysia, and Vietnam.

This optimism has direct implications for the financial services sector. Consumers who expect the economy to improve are more likely to increase insurance spending compared to those who view the outlook as deteriorating, the reinsurer said.

Despite the near-term optimism for GDP, the Philippines joined China as the only markets where confidence in upward social mobility is declining.

While 68 percent of middle-class Filipinos still expect to move to a higher socio-economic tier within five years, that figure is down from 70 percent a year ago.

The share of respondents who fear a downward shift in status rose to eigght percent from five percent last year. Meanwhile, 24 percent expect their status to remain unchanged, compared with 25 percent in the previous survey.