Philippines needs 6% growth until 2026 for upper middle-income status

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.

Reaching this status requires an annual GDP growth rate of at least 6-7%, which is challenging due to heightened geopolitical risks affecting trade, remittances, and foreign investment.

Experts warn that a global recession could delay the Philippines' income category reclassification until 2026 or beyond, citing potential impacts on GNI per capita and economic stability.

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