PH income upgrade means little while millions stay poor

By Francis Allan L. Angelo

Oxfam Pilipinas cautioned that the Philippines’ rise to upper middle-income country (UMIC) status under the World Bank’s income classification “means little if millions of Filipinos remain poor, vulnerable to climate disasters and other crises, and historically excluded from public services and opportunities.”

The anti-poverty group said deepening inequality and systemic corruption continue to plague the country despite the milestone.

“The country has proven it can grow. The challenge now is to prove that numbers translate to real change: reducing inequality so every Filipino can live free from poverty and discrimination, overcome crises with dignity, and share equally in the country’s progress,” said Oxfam Pilipinas Executive Director Lot Felizco.

“What we must ask our elected leaders is: Kailan madarama ng bawat Pilipino ang pag-asenso? Kailan magiging patas ang lipunan?” Felizco said.

Felizco said the Philippines, having reached a new income category, “must rise to a higher standard: building a just and equal society with an economy and accountable governance that work for everyone, not just a privileged few.”

The group issued the statement as the country’s economic managers hailed the World Bank’s move to raise the Philippines to the upper middle-income tier.

The Department of Trade and Industry (DTI) attributed the breakthrough to strong trade momentum and rising capital inflows, with gross national income (GNI) per capita breaching the threshold for the higher income tier.

The DTI credited the Marcos Jr. administration’s pursuit of 23 free trade agreements (FTAs) and international partnerships, saying the network of trade pacts has lowered trade barriers, broadened market access, and enhanced the global price competitiveness of Filipino exporters.

The Board of Investments (BOI) approved PHP 1.56 trillion in investments in 2025, the second-highest level of investment approvals in the agency’s 58-year history.

The Philippine Economic Zone Authority (PEZA) exceeded its annual investment target by approving PHP 260.89 billion across 314 new and expansion projects, a 21.91% increase from 2024 and the agency’s highest investment growth since 2016.

Philippine exports also hit historic heights in 2025 with record growth of 15.2% from the previous year, a momentum that carried into 2026 with monthly export growth of 7.9% in January, 8% in February, 20.4% in March, 6.3% in April, and 7.6% in May.

“This significant milestone is proof of the strong leadership of President Ferdinand R. Marcos Jr. in pushing for economic reforms that enhance the country’s global competitiveness and resilience,” said DTI Secretary and BOI and PEZA Chairman Cristina A. Roque.

“Under the Marcos Jr. administration, our focus on our 23 FTAs and improving the ease of doing business has unlocked record investment inflows and trade volumes. Serving as the ASEAN Chair for 2026 gives the Philippines a premier stage to showcase this economic progress, attract high-value capital, and ensure that our economic growth translates into sustainable, high-quality jobs for all Filipinos,” Roque added.

The DTI said the upgraded classification is a green light for international capital that is set to strengthen the country’s credit profile, boost investor confidence, and signal to global enterprises that the Philippines is stable and primed for manufacturing, innovation, and regional expansion.

The Bangko Sentral ng Pilipinas (BSP) described the move as “an important milestone that reflects years of steady economic progress” that signals improved productive capacity and incomes over time.

The central bank said the milestone underscores the importance of preserving macroeconomic stability and sustaining the National Government’s structural reforms.

For its part, the BSP cited the importance of managing inflation to encourage investment and protect the purchasing power of Filipino households, maintaining adequate international reserves, ensuring banks remain solid and able to support economic growth, and modernizing payment systems for fast and safe transfers. (Dondi Tawatao I | Getty Images)