Go: PH set to reach upper middle-income status
Finance Secretary Frederick Go expressed optimism that the Philippines can still reach upper middle‑income (UMIC) status by 2026, amid expectations of an economic rebound and steady growth.
In an interview, Go said the Marcos administration’s economic team was working to grow the economy and create more jobs that could raise the country’s gross national income (GNI) per capita to the World Bank’s UMIC threshold.
“Our strategy is to grow the economy and make sure that no one is left behind. Then, when you hurdle that rate, you become an upper middle-income economy,” Go told reporters.
The World Bank recently trimmed its growth forecasts for the Philippines this year and in 2026, but still expects a recovery. Jaffar Al-Rikabi, a senior economist at the bank, said the country remains on track to reach the UMIC threshold this year.
He noted, however, that GNI per capita must exceed the benchmark for three consecutive years before formal reclassification, meaning the Philippines could only officially become a UMIC by 2028, even if it meets the cutoff.
In July, the Philippines’ GNI per capita for 2024 was reported at a record-high $4,470, still $26 below the $4,496 threshold, which the World Bank adjusts annually for inflation. As a result, the country remains classified as lower middle-income economy.
According to Go, one of the challenges in reaching a higher status is the peso’s continued depreciation.
“One of the problems is that it’s defined in dollars. So even if we grow in pesos, if the foreign exchange rate works against us, that’s the problem,” he said.
The peso has been steadily weakening in recent months, hitting a historic low of 59.22 against the dollar on Dec. 9, surpassing the previous record of 59.17 on Nov. 12.
Despite this, Go remains optimistic.
“I am hopeful. I believe our economy will grow, and I shouldn’t make foreign exchange predictions,” he added.
