Philippines Poised to Attain Upper-Middle Income Status by 2025, Says NEDA Chief

The Philippines is on track to achieve upper-middle income status by 2025, according to National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan. Speaking at NEDA’s year-end press conference, Balisacan expressed optimism about the country’s economic trajectory, citing a strong growth outlook and effective poverty-reduction measures.

Meeting Key Benchmarks

The World Bank classifies economies based on Gross National Income (GNI) per capita. As of 2022, the Philippines remains a lower-middle income economy with a GNI per capita of $3,950, below the threshold for upper-middle income economies set at $4,466.

Neighboring countries like Indonesia ($4,580) recently upgraded to the upper-middle income bracket, while Malaysia ($11,780) and Thailand ($7,230) already occupy this tier. Meanwhile, high-income economies in the region include Singapore ($67,200) and Brunei ($31,410).

“Attaining this status will require us to hit our growth targets, maintain a steady economic trajectory, and ensure currency stability relative to our trading partners,” Balisacan said.

Economic Growth and Challenges

The Philippine economy expanded by 5.8% in the first three quarters of 2024, slightly below the government’s target of 6% to 7%. For 2025, the Marcos administration has set an ambitious growth target of 6.5% to 7.5%.

Balisacan also emphasized the need to manage inflation and enhance social protection programs to sustain progress and protect gains.

Poverty Reduction Milestones

The government remains committed to reducing poverty to a single-digit rate by 2028. The poverty rate dropped from 18.1% in 2021 to 15.5% in 2023, translating to 17.54 million poor Filipinos in 2023, compared to 19.99 million in 2021.

“Maintaining low and stable prices is critical to reducing poverty and ensuring inclusive growth,” Balisacan said, highlighting the role of digital solutions enabled by the National ID system in enhancing social protection programs.

With sustained economic growth and targeted measures, the Philippines is set to elevate its status on the global economic stage while continuing efforts to uplift its population.