‘While government touts slowing inflation and fewer jobless Filipinos, the ground-level reality for the majority appears to be quite different.’
AS a nation perennially on the precipice of promise, it usually finds itself in a peculiar economic paradox.
We have government pronouncements and official statistics, on one hand, painting a country inching closer to the coveted “upper-middle income country” status, a mere $26 per capita shy of the threshold.
According to World Bank’s country income classification, the Philippines will remain in the lower-middle income category after posting a lower gross national income (GNI) per capita of $4,470, only $26 short of the $4,496 minimum requirement to be considered an upper-middle income economy.
On the other hand, the reality for millions of Filipinos, as revealed by recent surveys, is one of persistent financial struggle, anxieties over inflation and job security, and a disheartening sense of being perpetually poor. They are nowhere near the “middle class” status.
At a granular level, about 34.4 million of the 117 million Filipinos are considered middle class, according to the Philippine Statistics Authority. One would wonder if this figure is close enough to clinch for us the upper-middle class label.
The TransUnion’s Q2 2025 Consumer Pulse study seems to draw another rosy picture as 73 percent of respondents anticipate an income increase in the next 12 months, with a notable 41 percent of them already experiencing it.
The projected income boost is also driving Millennials and Baby Boomers and a significant portion of Gen Z to plan applying for new credit in the coming year, primarily for personal loans. Ironically, nearly half of all respondents, a staggering 44 percent, harbor concerns about their ability to repay current bills or loans.
This reliance on credit can be a double-edged sword, offering immediate relief while potentially exacerbating long-term debt burdens. And we could be seeing the morphing of a new generation of young debtors.
But even so, Filipinos are already tightening their belts and are actively re-evaluating their spending habits, cutting back on discretionary expenses and even reducing digital service subscriptions, according to TransUnion.
While these actions can be seen as prudent financial management, they also reflect a deep-seated apprehension about the future.
If we are indeed so optimistic about the future that even our government dreams of catapulting the country to an upper middle-class status, why is it that many still feel left out and poor?
A Social Weather Stations (SWS) survey in April 2025 shows that a staggering 15.5 million Filipino families considered themselves “poor.” SWS said self-rated poverty has risen across almost all regions, most acutely in Mindanao and the Visayas, starkly contrasting with the narrative of national progress.
While government touts slowing inflation and fewer jobless Filipinos, the ground-level reality for the majority appears to be quite different.
And then we come back to the government’s much-hyped declaration that the Philippines almost achieved upper-middle income status.
On the surface, this sounds like a testament to progress, a pat on the back for our economic managers. But to the millions grappling with daily financial woes, struggling to put food on the table, battling the traffic and floods, and worrying about their next paycheck or next job, all these ring hollow – an almost mockery of their poverty and hardship.
Being shy of becoming an upper-middle class country does not alleviate the burdens of a family with a sick member in hospital care or facing eviction or a parent unable to afford their child’s school supplies.
The true measure of a country’s economic success lies not in abstract metrics but in the tangible upliftment of its people, a goal that, for now, remains frustratingly out of reach for many Filipinos.
