Philippines needs 6% growth to reach upper-middle income status by 2026

The Philippines needs to sustain a 6% economic growth rate until next year to achieve upper middle-income status by 2026, according to National Economic and Development Authority Secretary Arsenio M. Balisacan.

Currently classified as a lower-middle income country with a gross national income (GNI) per capita of $4,230 in 2023, the Philippines aims to reach upper middle-income status this year or by 2026.

Despite posting record-high GNI figures, Secretary Balisacan emphasized that reaching upper-middle income status remains challenging due to heightened geopolitical risks affecting trade, remittances, and foreign investment.

Balisacan noted that while the country's ascent to an upper-middle income bracket is possible if it can maintain strong growth numbers, such progress may also result in the loss of economic perks available to lower-income nations.

Despite these challenges, Secretary Balisacan emphasizes focusing on employment, poverty reduction, literacy rates, and living standards rather than solely GDP growth to measure progress.