Philippines aims for UMIC status by 2026 with annual GDP growth of 6-7%

Analysts say increased public expenditure and investments are necessary to boost economic growth and help the Philippines achieve upper-middle-income country (UMIC) status by 2026.

Oikonomia Advisory and Research economist Reinielle Matt M. Erece noted that GDP must grow at least 6%-7% annually to reach UMIC status, emphasizing the need for strong economic performance and sound fiscal policies.

The Philippines currently has a gross national income (GNI) per capita of $4,230 in 1923, up from $3,950 in 2022, but still classified as a lower-middle-income country by the World Bank.

Ateneo School of Government Dean Philip Arnold P. Tuaño stressed that achieving UMIC status depends on short-term investments and consumption levels, while acknowledging potential challenges due to global economic uncertainties.

The Marcos administration expects the Philippines to reach UMIC status over the next two years (2025-2026) as per World Bank projections, with growth rates of 6.1% in 2025 and 6% in 2026.