MANILA, Philippines–The government has recalibrated its national development roadmap with an updated plan that projects the country will achieve upper-middle-income status soon and its gross national income (GNI) per capita will exceed $5,000 by 2026.
The Department of Economy, Planning and Development (DEPDev) said Friday the Midterm Update of the Philippine Development Plan (PDP) 2023-2028 outlines the government’s recalibrated strategy for the second half of President Ferdinand Marcos Jr.’s term.
The ultimate goal is to lead the Philippines toward becoming an upper-middle-income country with inclusive growth that benefits all regions, not just major urban centers, DEPDev said in a statement.
“Before the end of President Ferdinand R. Marcos, Jr.’s administration in 2028, the Philippines will sustain rapid economic growth and attain upper-middle-income status—a milestone that reflects the nation’s resilience, determination and sustained commitment to inclusive growth,” said DEPDev Secretary Arsenio Balisacan.
The updated plan includes several key economic targets, including GDP growth of 5.5 percent to 6.5 percent in 2025, and 6 percent to 7 percent from 2026 to 2028.
GNI per capita is expected to reach $4,814 to $4,920 by 2025; $5,124 to $5,210 by 2026; $5,452 to $5,589 by 2027; and $5,882 to $6,081 by 2028.
National government deficit to GDP is seen reaching 5.5 percent in 2025, 5.3 percent in 2026, 4.8 percent in 2027 and 4.3 percent in 2028.
National government debt to GDP is expected to be 56 percent to 59 percent in 2025, and decline to a range of 58 percent to 61 percent by 2028.
Balisacan said the updated plan builds on the country’s recent gains while adapting to new challenges. It aims to boost productivity, accelerate innovation and human capital development, create high-quality jobs and promote infrastructure development.
“The updated plan reflects how we are adapting to emerging challenges while remaining committed to our long-term development goals,” Balisacan said.
The plan acknowledges that global economic uncertainty, partly due to US tariff policies, could slow multinational expansions and dampen investor appetite, potentially impacting job creation in the Philippines. It also highlights the risks posed by increased digitalization, rising cybersecurity threats, and the country’s vulnerability to severe weather events and rising sea levels.
The report noted the Philippine economy expanded by 5.5 percent in 2023 and 5.7 percent in 2024, placing it among the fastest-growing economies in Asia. It also pointed to record-low unemployment, which reached 4.3 percent in 2024, and a steady decline in inflation.
Balisacan said fiscal discipline has been maintained, with the national government’s deficit-to-GDP ratio reduced to 5.7 percent in 2024 from 7.3 percent in 2022. He also cited the country’s improved ranking in the Global Innovation Index (GII), reaching 53rd in 2024, surpassing the original target.
The updated plan cites the need for strategic, coordinated policy interventions to strengthen the economy’s foundations and will serve as a blueprint for budgeting, investment programming and legislative priorities for the remainder of the administration.
“Improvements in the numbers mean little if these do not translate into meaningful changes in people’s lives,” Balisacan said.
