House think tank: Middle-income status result of sound policies, growth

THE Philippines’ rise to upper-middle income country status was not an overnight development, but the result of decades of economic growth, policy continuity and sustained efforts to improve the country’s standing in the global economy.

“Hindi po ito nangyari sa isang araw o isang taon. Ito po ay culmination of about four decades of trying to improve yung ating economic standing,” House pf Representatives’ Congressional Policy and Budget Research Department (CPBRD) Executive Director Novel Bangsal said Saturday during the Saturday News Forum at Dapo Restaurant in Quezon City.

Bangsal, an economist, said the country’s new classification should be seen as a major affirmation of the Philippines’ long-term economic direction, even as the government must continue working to make growth more inclusive.

“Tama po, tayo po ay umangat na sa upper-middle income country status nitong June 2026,” Bangsal said.

The World Bank classifies economies based on gross national income per capita, and the Philippines moved into the upper-middle income category after reaching a GNI per capita of $4,850, above the $4,636 threshold.

“The advantage ng pagkamit natin ng UMIC status is that it improves yung ating standing in the international arena, improves our credibility,” Bangsal said.

For Bangsal, the country’s improved status can help strengthen investor confidence, support the Philippines’ credibility with development partners and open wider access to international financing.

“Because of this standing, since it has improved yung ating credibility sa international arena, we can be able to access more funds sa international capital markets,” he said.

Bangsal, however, said the country should treat the development with optimism and discipline, since the new classification is a national indicator that must still be matched by improvements felt by households.

“Dapat siguro tanggapin natin ang news na ito as upbeat but cautious news,” Bangsal said.

He explained that while the upgrade reflects stronger national income, it does not automatically mean that poverty, inequality or household welfare has already improved at the same pace.

“Hindi po natin masasabi na dahil umangat po ‘yung ating GNI per capita, masasabi po natin na meron pong pagbabago sa poverty o equity dimensions patungkol sa mga households,” he said.

Bangsal said GNI per capita remains useful in assessing the country’s overall economic performance, but it should not be treated as the only measure of national progress.

“Ito po ay sukatan at the national average, isang way of measuring our economic performance, but of course hindi po ito sukatan ng lahat,” Bangsal said.

The House think tank official said the next challenge is to sustain growth, protect the country’s gains and ensure that the benefits of a stronger economy reach workers, families and vulnerable communities.

“Hindi naman natin sinasabi na hanggang dito na lang yung ating efforts. Of course, we need to do more,” he said.

Bangsal also said the recent Metro Manila wage increase was a positive step because ordinary workers continue to face the impact of higher prices on their purchasing power.

“We are in favor of having a wage increase,” he said.

He said the P85 increase in the National Capital Region would help workers recover part of the income value lost to inflation.

“So, more or less, parang binabalik niya yung nawalang purchasing power ng mga manggagawa natin,” Bangsal said.

The Philippines’ upper-middle income status places it in a stronger position internationally, but Bangsal said the work ahead remains clear: sustain sound policies, protect fiscal strength, manage external risks and make economic gains more visible in the daily lives of Filipinos.