The Philippines is on the cusp of achieving upper-middle-income status, according to Department of Economy, Planning and Development (DEPDev) Secretary Arsenio Balisacan.
Balisacan said the country met its gross national income (GNI) per capita targets for both 2023 and 2024. “In the World Bank’s estimates of GNI per capita for 2024, we were short of just $26 to become an upper-middle-income country,” Balisacan said.
He noted that from 2023 through the first quarter of 2025, the Philippines remained among Asia’s fastest-growing economies.
Unemployment has dropped below pre-pandemic levels, while underemployment steadily declined in 2023 and 2024.
Poverty incidence fell to 15.5 percent in 2023, lifting an estimated 2.4 million Filipinos out of poverty. Inflation significantly eased, from a peak of 8.7 percent in January 2023 to just 1.4 percent in June 2025.
“These figures reflect the resilience of our economy amid global and domestic uncertainties, as well as the outcomes of our deliberate and sustained reforms,” Balisacan said.
He said the government, guided by the Philippine Development Plan, has developed strategic frameworks in key areas such as innovation, water resources management, and digital transformation to strengthen cross-sectoral planning and implementation.
Balisacan said structural reforms pursued through legislation, including the enactment of the PPP Code and amendments to investment liberalization laws, complement these efforts. These initiatives aim to unlock growth opportunities and enhance the quality of public service delivery.
Despite these gains, Balisacan acknowledged that not all development objectives have been met. “Many global and domestic disruptions revealed vulnerabilities in our economy, while coordination and regulatory issues continue to delay some major infrastructure and social projects,” he said.
He said these experiences offer valuable insights for navigating megatrends such as geopolitical tensions, climate change, technological disruption, and demographic shifts. “To deal with these trends, we must consistently strengthen our capacity to formulate evidence-based and forward-looking policies, enable real-time monitoring, and enhance our ability to anticipate risks through high-quality data and scenario planning,” Balisacan said.
Balisacan stressed that a strong domestic economy serves as the best buffer against external shocks. He called for “sustained efforts to ensure food and energy security, maintain low and stable inflation, and make a more diversified and competitive economic base.”
Equally important, he added, are measures to lower the cost of doing business, improve regulatory efficiency, and attract investments in high-potential sectors.
“From 2025 to 2028, the Marcos Administration is committed to sustaining rapid and inclusive economic growth,” Balisacan said.
This will be achieved by promoting economic diversification, maintaining sound macroeconomic fundamentals, strengthening competitiveness and innovation and reducing poverty to single-digit levels by the end of the term, he said.
