By Benjamin Cuaresma
MANILA — President Bongbong Marcos Jr. hailed the Philippines’ elevation to upper-middle-income country status as a major economic milestone, describing it as a strong endorsement of the nation’s growth prospects and the government’s reform agenda over the past four years.
Speaking in a video message during his official visit to Canada, Marcos said the country’s new classification demonstrates that the international community recognizes the progress achieved through sustained economic reforms and the resilience of the Filipino people.
The President stressed that the recognition should attract greater investor confidence, paving the way for increased business activity, expanded employment opportunities, and stronger economic prospects for Filipino families. He emphasized that the government’s goal is not simply to improve economic statistics but to ensure that development leads to tangible improvements in people’s daily lives.
The World Bank recently reclassified the Philippines as an upper-middle-income economy after the country’s sustained economic expansion pushed its gross national income per capita beyond the required threshold. The Philippine economy has also maintained an average annual growth rate of nearly six percent over the past five years despite global economic uncertainties.
Marcos noted that the achievement ends almost four decades of the country’s classification as a lower-middle-income economy, saying prudent fiscal management, long-term reforms, and economic stability helped position the country for the upgrade.
Executive Secretary Ralph Recto welcomed the development but cautioned that the new income classification should not be viewed as the country’s final objective.
According to Recto, the administration’s priority remains reducing poverty and ensuring that economic growth benefits ordinary Filipinos through higher incomes, improved public services, and expanded opportunities.
He said the government intends to continue reforms aimed at improving the business climate, expanding digital infrastructure, strengthening education and workforce development, and enhancing the country’s resilience against climate change and global economic disruptions.
Department of Economy, Planning and Development Undersecretary Rosemarie Edillon said the country should capitalize on its upgraded status by increasing investments in infrastructure and human capital.
Edillon explained that accelerating government spending on transport networks, logistics, and public infrastructure would improve productivity, facilitate trade, and encourage tourism. She also underscored the need to invest heavily in education and skills development to prepare the workforce for higher-value industries and long-term economic competitiveness.
Management Association of the Philippines President Donald Lim described the country’s new classification as a positive signal for international investors.
However, he pointed out that many households continue to grapple with inflation, rising living costs, and limited purchasing power. Lim said the true value of the country’s economic progress will ultimately depend on whether it generates better-paying jobs, stronger household incomes, and broader opportunities for Filipinos.
Eli Remolona Jr. said the country’s advancement reflects years of sound macroeconomic management but stressed that maintaining stability and pursuing structural reforms remain essential to sustaining growth.
Meanwhile, Zafer Mustafaoğlu described the country’s upgraded status as a starting point rather than an endpoint.
He said the Philippines’ next challenge will be boosting productivity, encouraging innovation, creating higher-quality employment, and ensuring that economic gains reach communities across the country.
Not everyone welcomed the announcement with optimism.
Antonio Tinio dismissed the development as disconnected from the realities experienced by many workers.
ACT Chairperson Ruby Bernardo argued that stagnant wages and the continued struggle of teachers, government employees, and laborers make it difficult for ordinary citizens to feel the benefits of the country’s improved economic standing.
The Trade Union Congress of the Philippines likewise criticized government officials for celebrating the country’s higher income classification while opposing proposals for a legislated wage increase, saying economic progress should be reflected in workers’ earnings and purchasing power.
While the World Bank’s recognition marks an important chapter in the Philippines’ economic journey, analysts agree that the country’s long-term success will ultimately be measured not by international classifications, but by whether growth translates into better jobs, higher incomes, and an improved quality of life for every Filipino.
ia/xf
