Malacañang on Thursday admitted that the Philippines fell short of its goal of achieving upper middle-income status this year, as it remains classified by the World Bank as a lower middle-income country.
In a press briefing, Presidential Communications Office Undersecretary Claire Castro acknowledged the setback but emphasized that the Marcos administration remains committed to pursuing economic reforms to elevate the country’s income classification.
“We admit that for now, we have not yet reached upper middle-income status,” Castro said. “But the economy is showing good progress due to the improving gross national income per capita since 2024,” she added.
Despite global economic challenges, Castro stressed that the government will “double” its efforts to meet the long-standing economic goal, which President Ferdinand Marcos Jr. has identified as a key milestone for his administration.
The World Bank’s classification is based on a country’s gross national income (GNI) per capita. For 2024, the threshold for upper middle-income countries is approximately $4,516 to $14,005. The Philippines remains below this bracket.
Asked whether the Marcos administration is confident it can achieve upper middle-income status within the President’s term, Castro said both the President and his economic team remain optimistic.
“Yes, the President, as well as the economic team and the entire administration, are staying positive. So, we can handle that,” she said.
When pressed on whether the government plans to adjust its strategies or implement tweaks in existing plans and programs to stimulate the economy, Castro said discussions with the country’s economic managers are ongoing.
“We will be talking in particular to the economic team so we can give you the details regarding that,” she said. The Marcos administration has repeatedly cited economic transformation as a pillar of its agenda, with a strong focus on infrastructure, job creation, and digitalization. However, inflation, global market instability, and the lingering effects of the pandemic continue to weigh on growth targets.
