The National Economic and Development Authority (NEDA) is keeping its expectation that the Philippines will transition to upper-middle income country (UMIC) status as early as next year.
NEDA Secretary Arsenio Balisacan said on the sidelines of the launch of the National AI Strategy Roadmap 2.0 in Mandaluyong City yesterday, the gross national income (GNI) per capita will only have to grow by 6.7 percent for the Philippines to reach the lowest threshold for a UMIC.
“It is quite there, because the (GNI per capita) threshold is $4,500. You need to have that as the minimum to get into the club of upper-middle income countries,” Balisacan said.
“We are now (at) $4,230. So you only need 6.7 percent growth,” he added.
Balisacan said the Philippines could reach UMIC status by late 2025.
“It’s within reach, right? We are projecting six to seven percent (gross domestic product growth) this year. We all move together. So the per capita, very reachable, achievable,” Balisacan said.
During its recent meeting, the Development Budget Coordination Committee said the country’s growth trajectory puts the country firmly on the path to becoming an upper-middle-income economy in less than two years.
According to the World Bank’s report published last month titled “Philippines Human Capital Review: Investing in the Early Years to Boost Human Potential,” with a notable rise in GNI, the Philippines is on the cusp of attaining UMIC status by 2026.
However, the multilateral agency said the Philippines’ human capital indicators fall short of a typical UMIC.
Catching up with peers will require more and better investments in human capital across the life cycle, the World Bank added.
“If the Philippines were to achieve its UMIC status by 2026, it would need sizeable investments in human capital in the short and medium terms to attain comparable human capital outcomes,” the World Bank said.
