71,1% Rise in Philippines’ GNI – Steps Towards Upper-Middle Income Status

The World Bank reported an increase in the Philippines’ gross national income (GNI) per capita for the past year, although the country remains classified as a lower-middle-income economy. GNI per capita is a measure of the economy’s total income divided by its population.

The data shows that the Philippines’ GNI per capita in 2023 rose to $4,230, a 7.1% increase from $3,950 in 2022. Similarly, the Philippine Statistics Authority recorded the GNI per capita at current prices to be P241,165 in 2023, up 14.7% from P210,228 in the previous year. Despite the increase, the Philippines still falls within the World Bank’s updated lower-middle-income bracket of $1,146 to $4,515, adjusted from the previous range of $1,136 to $4,465.

The World Bank’s classification for fiscal year 2025 includes low-income economies with a GNI per capita of $1,145 or less, upper-middle-income economies with a GNI per capita between $4,516 and $14,005, and high-income economies with a GNI per capita of $14,006 or more. These thresholds are adjusted annually for factors such as inflation, exchange rates, and economic growth.

The Philippines shares its lower-middle-income status with countries like Vietnam, Cambodia, India, Bangladesh, Papua New Guinea, Myanmar, Pakistan, and Timor-Leste.

The National Economic and Development Authority (NEDA) highlighted that the Philippines’ GNI per capita surpasses the 2023 target range of $4,130 to $4,203 set in the Philippine Development Plan (PDP) 2023-2028. NEDA Secretary Arsenio Balisacan noted that this achievement underscores the country’s robust economic growth and stable macroeconomic fundamentals.

Balisacan mentioned that the government aims to elevate the economy to upper-middle-income status by late 2025 or early 2026. He emphasized that while achieving the GNI per capita target is significant, the focus remains on ensuring that economic growth benefits all Filipinos, particularly the poor, with the goal of reducing the poverty rate to single digits by 2028. The ultimate goal, according to Balisacan, is not merely achieving numerical targets but improving the quality of life for the Filipino people.

To reach upper-middle-income status, the Philippines must maintain a strong growth rate in 2024 and 2025. Balisacan stressed the importance of sustaining this momentum by improving the policy and regulatory environment and fostering a balanced mix of industries. The country’s accelerated infrastructure development aims to enhance connectivity and encourage growth across all regions, pushing for greater inclusivity.

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