Despite a steady rise in income levels, the Philippines has yet to break out of the lower middle-income category, according to the latest classifications released by the World Bank.
The country’s gross national income (GNI) per capita climbed to $4,470 in 2024, a modest increase from $4,320 in 2023. But the figure still falls just short of the World Bank’s threshold for upper middle-income economies, which starts at $4,496. As a result, the Philippines remains in the lower middle-income bracket — where it has been since 1987.
The World Bank updates these classifications annually based on the previous year’s GNI per capita, using the Atlas method. Countries are grouped into four categories: low, lower middle, upper middle, and high income.
While the upward movement in GNI reflects the country’s gradual progress, the classification underscores a deeper challenge: the Philippines continues to lag in crossing the income divide, which also limits its access to favorable financing and official development assistance.
President Ferdinand Marcos Jr.’s administration has expressed its goal of reaching upper middle-income status within his term. However, the World Bank previously projected that this milestone is more realistically attainable by 2027, given current global headwinds, including the effects of ongoing trade conflicts.
