Philippines Upper-Middle Income Status Expected to Boost Investment Appeal

The Philippines upper-middle income classification has been restored by the World Bank after the country's gross national income per capita increased to a record USD4,850, reflecting several years of sustained economic expansion.

The milestone is expected to enhance the country's international investment profile while strengthening confidence among foreign investors and financial institutions.

The Philippines had remained in the lower middle-income category since 1987 and narrowly missed the upgrade threshold a year earlier.

According to the World Bank, the economy recorded average annual GDP growth of 5.8% over the past five years, supported by broad-based expansion across major industries.

The Department of Economy, Planning, and Development said the Philippines upper-middle income upgrade should improve the country's sovereign credit profile, encourage higher-quality foreign investment and support long-term economic development.

Vietnam, Jordan, Micronesia and Sri Lanka were also reclassified as upper-middle income economies under the latest World Bank review.