WB: PH can be middle-class by 2040 with reforms

The Philippines can achieve middle-class status by 2040 by implementing reforms that focus on job creation and productivity, according to a World Bank report.

The World Bank estimates that full implementation of these reforms can increase the annual average GDP growth rate from 5.4% to 6.8% over the next 15 years.

This projected growth rate could result in the Philippine economy being 23.6% greater by 2040 compared to a business-as-usual scenario.

Furthermore, the reforms are projected to create 5.1 million new jobs and increase average real wages by 13% by 2040.

The report also suggests that with these reforms, the Philippines could reach the verge of becoming a high-income economy within 25 years.

World Bank Division Director Zafer Mustafaoglu previously emphasized that job creation is vital for inclusive growth, social stability, and poverty reduction.

However, the World Bank warns that without bold reforms, the Philippines may not achieve the sustained growth needed to improve living standards and decrease regional inequality.