The Philippines’ largest business group is confident that the country can achieve upper-middle-income status as early as 2025.
This optimism comes as gross national income per capita reached $4,230 in 2023, just below the World Bank’s threshold of $4,516 for this income classification.
“Achieving upper-middle-income status is a goal we all want to realize as soon as possible,” said Philippine Chamber of Commerce and Industry (PCCI) president Enunina Mangio.
“Setting a timeline for 2025 may be feasible,” she said.
Recent data show promising growth, with GNI expanding by an average of 9 percent to 10 percent since 2021. However, achieving the desired status will require consistent annual GDP growth of 7 percent.
To reach this target, experts underscore the need to address barriers to growth, boost productivity, and create more quality jobs.
The government’s role is crucial in tackling issues related to the ease and cost of doing business, including transportation and logistics costs, power supply reliability, and streamlining permit and licensing processes.
A supportive regulatory environment that fosters innovation and expansion is also critical, as some large domestic enterprises are reportedly considering relocating to countries with more favorable conditions.
The true measure of success lies in translating upper-middle-income status into tangible benefits for the Filipino people. This means creating income-generating jobs not just in urban centers but also in rural areas, where poverty rates remain significantly higher at 36 percent compared to 13 percent in urban areas.
The business community’s optimism reflects a belief in the Philippines’ potential for economic advancement. However, realizing this potential requires a concerted effort from both the public and private sectors to address challenges and create an environment conducive to sustainable and inclusive growth.
The goal is clear: to ensure that economic progress translates into improved living standards for all Filipinos, regardless of their location.
