Recto: PH Nears Upper Middle-Oncome Status as Marcos Cites Reforms, Investments

The Philippines is on the brink of achieving upper middle-income country (UMIC) status, a milestone the Marcos administration says reflects the gains from sustained economic reforms and record public investments.

Executive Secretary Ralph Recto said the country’s gross national income (GNI) per capita reached $4,470 in 2024, just $26 short of the World Bank’s $4,496 threshold for upper middle-income economies.

“Twenty-six dollars — roughly the cost of five cups of coffee. That is how close we are,” Recto said in a speech before an international business audience on Thursday.

Citing World Bank internal projections, Recto said the Philippines is expected to officially cross the UMIC threshold this year, with GNI per capita projected to rise further to $6,119 by 2029 if growth momentum is sustained.

Recto credited Ferdinand Marcos Jr. for steering the country toward this milestone through a focus on economic stability, reforms, and governance.

“Our strong fundamentals, disciplined fiscal management, and a bold reform agenda will push us forward,” Recto said, adding that clean, credible, and accountable governance under the Marcos administration has been key to boosting investor confidence.

He highlighted the ₱6.793-trillion national budget for 2026, which allocates record-high funding for education, healthcare, agriculture, and social protection, as central to inclusive growth efforts.

Recto also pointed to ₱1.3 trillion earmarked for the government’s “Build Better More” program, which aims to modernize transport and digital infrastructure to generate jobs, improve connectivity, and spur regional development.

Under President Marcos’ directive, Recto said the government is recalibrating its public construction strategy by empowering local government units to identify and implement priority projects, while maintaining fiscal discipline.

The administration aims to reduce the budget deficit to 4.3 percent of GDP by 2028, supported by stronger revenue collection and more targeted spending.

Recto said the Marcos government is likewise accelerating structural reforms to position the Philippines as a competitive investment destination in the region.

“These include unlocking private investment in agriculture, cutting regulatory red tape, streamlining merger reviews to promote fair competition, and expanding digitalization and transparency,” he said.

While nearing upper middle-income status is a major benchmark, Recto stressed it is not the end goal.

“Claiming that status is just a pit stop,” he said. “Improving the lives of every Filipino has no finish line.”