The Philippines has reached upper-middle income (UMIC) status, the World Bank said.

In its latest income assessment released Wednesday, the World Bank reported that the Philippines’ gross national income (GNI) per capita was at USD4,850, exceeding the USD4,636 threshold.

For the current fiscal year, low-income economies are defined as those with a GNI per capita, calculated using the World Bank Atlas method, of USD1,175 or less in 2025; lower middle-income economies are those with a GNI per capita between USD1,176 and USD4,635; upper middle-income economies are those with a GNI per capita between USD4,636 and USD14,375; high-income economies are those with more than a GNI per capita of USD14,375.

The Philippines joined Jordan, Micronesia, Sri Lanka, and Vietnam which also moved from low-middle income to upper-middle income country status.

“The Philippines achieved its reclassification through broad-based expansion. GDP (gross domestic product) grew at an average of 5.8 percent per year over five years, reflecting gains across all major industries, not a single sector boom, but an economy-wide shift,” the World Bank said in a separate blog.

In a separate statement, the Department of Economy, Planning, and Development (DEPDev) said the country’s UMIC status was driven by sustained growth, sound macroeconomic management, and long-term structural reforms.

“This confirms the resilience of the Philippine economy. Despite global and domestic shocks, we have relentlessly pursued inclusive growth, strengthened fundamentals, and remained on track with our development agenda,” DEPDev Secretary Arsenio Balisacan said.

DEPDev expects the new classification to strengthen the country’s credit profile, boost investor confidence, and expand access to financing and higher-quality investments that generate better jobs for Filipinos.

While some concessional Official Development Assistance (ODA) may decline over time, Balisacan said the gains from stronger fundamentals and improved market access are expected to outweigh these adjustments.

“We welcome this recognition of our progress and we commit to deepen reforms to sustain our economic development,” Balisacan said.

He also acknowledged the contribution of overseas Filipino workers (OFWs), whose earnings abroad form part of the country’s GNI.

“Our OFWs have played an important role in reaching this milestone. At the same time, our long-term goal is to create more high-quality jobs at home so overseas employment becomes a choice, not a necessity,” he said.

Balisacan, however, noted that the new classification does not diminish ongoing challenges.

“We acknowledge that income disparities persist, and many continue to face economic difficulties. Our priority is to ensure that growth becomes more inclusive, and that its benefits reach all Filipinos,” Balisacan said.PNA