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Manila Bulletin devider Business devider The Economy devider Philippines achieves upper-middle-income ambition

Philippines achieves upper-middle-income ambition

Published Jul 1, 2026 09:22 pm

The Philippines achieved its long-standing goal of attaining upper-middle-income-country (UMIC) status with a record-high gross national income (GNI) per capita in 2025, even as neighboring Vietnam made a bigger stride toward the same World Bank classification.

The World Bank announced on Wednesday night, July 1 (Manila time), that the Philippines, Jordan, Micronesia, Sri Lanka, and Vietnam had joined the ranks of UMICs, with their respective GNI per capita ranging from $4,636 to $14,375 in 2025. This is the income range for UMICs for fiscal year (FY) 2027, covering the period from July 1, 2026, to June 30, 2027.

Manila Bulletin reported earlier that the Philippines’ GNI per capita rose to a record $4,850 in 2025 from $4,470 in 2024, based on World Bank documents published earlier this week.

GNI measures the total income earned by a country’s residents, both domestically and abroad, making it a broader measure of economic performance than gross domestic product (GDP), which accounts only for domestic output.

Based on separate World Bank Group (WBG) DataBank figures seen by Manila Bulletin, the Philippines’ GNI, using the Atlas method, rose to $566.8 billion in 2025 from over $518 billion in 2024.

The country had been stuck in lower-middle-income-country (LMIC) status since at least FY 1989.

“The Philippines achieved its reclassification through broad-based expansion. GDP grew at an average of 5.8 percent per year over five years, reflecting gains across all major industries, not a single sector boom, but an economy-wide shift,” the World Bank said in a blog post.

However, the Philippines’ 2025 GNI per capita remained below Vietnam’s, which climbed to $4,970 from $4,490 a year ago. As a result, the income gap between the two countries widened sixfold—from just $20 in 2024 to $120 in 2025.

“Vietnam tells a story of growth. Powered by an export-led model, the country saw exports surge by more than 15 percent in both 2024 and 2025, with its GDP growing at seven percent and eight percent, respectively. GNI expanded at an average of 10 percent annually between 2021 and 2025—one of the strongest sustained runs in the region,” the World Bank said.

Based on the June 18 World Bank board report seen by Manila Bulletin, Vietnam’s GDP per capita grew by a faster 7.4 percent in 2025, compared with the Philippines’ 3.6 percent.

To recall, Philippine economic growth slowed to a post-pandemic low of 4.4 percent last year in the aftermath of the multibillion-peso flood-control infrastructure corruption scandal, which tempered investor appetite as well as public and private consumption.

Among the other new UMICs, documents showed that Jordan posted a 2025 GNI per capita of $5,260, Micronesia recorded $4,760, and Sri Lanka reached $4,670.

Meanwhile, Togo moved up from low-income to LMIC status, with a 2025 GNI per capita of $1,350, documents showed.

For FY 2027, the LMIC income range covers economies with a 2025 GNI per capita of $1,176 to $4,635.

With its newly attained UMIC status, the Philippines will eventually lose access to the most concessional official development assistance (ODA), or low-interest loans, extended by bilateral development partners as well as multilateral lenders such as the World Bank, the Manila-based Asian Development Bank (ADB), and the China-led Asian Infrastructure Investment Bank (AIIB).

In his inaugural State of the Nation Address (SONA) in 2022, President Ferdinand R. Marcos Jr. said the Philippines aspired to attain UMIC status by 2024—a target that was postponed multiple times as economic growth fell short of expectations in recent years.

During the previous Duterte administration, its economic team had targeted UMIC status by 2020, a goal that was derailed by the socioeconomic crises inflicted by the Covid-19 pandemic.

Related Tags

Philippines upper-middle-income country (UMIC) status World Bank Vietnam gross national income (GNI) per capita gross national income (GNI)
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