July 8, 2026 l Business Mirror
The World Bank recently classified the Philippines as an “Upper Middle-Income Country” (UMIC). Upper middle means a country records a gross national income (GNI) per capita of $4,636 to $14,375. The Philippines posted a GNI per capita of $4,850, just above the qualification line.
As quickly, President Ferdinand R. Marcos Jr. declares: “After nearly four decades as lower-middle income country since 1987, this milestone affirms that the economic policies we have pursued over the past four years have been effective.”
He continues: “Our steady economic growth, broadly stable currency and long-term reforms have strengthened our economy even amid global uncertainties. It validates the progress we have made and the resilience of the Filipino people.”
The World Bank explains: “The Philippines achieved its reclassification through broad-based expansion. GDP grew at an average of 5.8 percent per year over five years, reflecting gains across all major industries, not a single boom, but an economy-wide shift.”
These words should proclaim good news, but they don’t feel so.
Sure, there’s that increase in income per capita; but that’s an average. The disparities in income between the rich and the poor Filipinos have become wider, and felt more painfully by the poor Filipino.
Inflation and reduced purchasing power made GNI per capita a meaningless metric. Just look at the basics: rice and the staple food items have gone up, and stayed up, in prices. So with the cost of electricity and water. Essential transportation to move people to work has become almost prohibitive in expense.
Where’s the progress? Where’s the good news? There is disconnect between World Bank statistics and the reality of a deteriorating standard of living for the majority of our population.
Per capita statistics really provide an illusion of progress when there is meaningfully none.
That is why there is already the caution from some of our economists. The country must grow continuously 5 percent to 7 percent to maintain our UMIC classification.
But in 2025, our economy grew only by 4.4 percent, a dismal record. And this year the growth might just be 3.5 percent to 4.5 percent. So many internal and external risk factors pose headwinds: high oil prices; supply chain disruptions; climate change adversities; unemployment; and, corruption that bleeds our national budget.
All these threaten our UMIC status. More significantly, they perpetuate inequalities for Filipinos in opportunities and in incomes.
“We acknowledge that income disparities persist, and many continue to face economic difficulties. Our priority is to ensure that growth becomes more inclusive, and that its benefits reach all Filipinos,” said Arsenio M. Balisacan, our government’s economic planning head.
Honestly said. Let’s move beyond our words.
***The views expressed herein are his own and do not necessarily reflect the opinion of his office as well as FINEX. For comments, email santidumlaojr@gmail.com. Photo is from Pinterest.