The World Bank Philippines recently announced that the Philippines is now classified as an upper-middle-income country. It described this as a milestone that reflects decades of progress, as well as the hard work, resilience, and aspirations of millions of Filipinos.
This is certainly an important achievement. But as the country celebrates this new status, this achievement feels somewhat unreal to me.
This feeling is not mine alone. Rappler noted that while the upper-middle-income classification is a milestone decades in the making, it sits uneasily beside the uneven development and daily insecurity still experienced by millions of Filipinos.
According to the World Bank’s income classification, an upper-middle-income economy is one with a gross national income, or GNI, per capita above US$4,636. The Philippines reportedly reached a GNI per capita of US$4,850, placing it just above the threshold.
But for many ordinary Filipinos, this new classification may feel like a label that does not necessarily reflect their daily economic reality. Even the country’s chief economist appears to recognize this gap.
“Upper-middle-income status is not our destination. It marks another stage in our development journey,” said Arsenio Balisacan, Secretary of the Department of Economy, Planning, and Development.
He added:
“Development is not measured by average income alone. It’s measured by whether growth creates quality jobs, increases productivity, expands opportunities, reduces poverty, and improves the quality of life of our people.”
I agree with this point.
The Philippines’ upper-middle-income status does not change the harsh working environment faced by millions of Filipinos. For the average Filipinos who are struggling with unstable jobs, or dealing with rising living costs, the government’s celebration may feel distant from reality. Some may reasonably ask: Where is the wealth that supposedly brought the country to upper-middle-income status?
The country still faces serious structural problems: corruption, political instability, a weak industrial base, poor environmental conditions, overexploitation of natural resources, the expansion of informal settlements and urban slums, and declining tourism potential in some areas. Over the years, I have personally observed signs of weakening in many aspects of daily life and governance, rather than a clear sense of broad-based progress.
The Philippines’ new status may partly reflect years of infrastructure expansion and investment. Previous administrations aggressively pursued major construction projects, including those supported by foreign financing and China’s Belt and Road Initiative. Across the country, construction has been visible, while public debt has also increased in recent years.
But the benefits of these investments are not yet strongly felt by millions of Filipinos. At least for now, many people still struggle with low wages, poor public services, and limited opportunities.
The comparison with neighboring countries is also difficult to ignore. A decade ago, many people still viewed the Philippines as more advanced than Vietnam in several ways. Today, Vietnam appears to be moving faster in industrialization, exports, infrastructure, and foreign investment. Looking further back, about four decades ago, the Philippines was often compared favorably with South Korea. Today, it is difficult for many people to imagine that the Philippines was once wealthier than Korea.
So, the real question is not whether the Philippines has crossed a statistical threshold. The deeper question should be “Why has the Philippines not advanced faster?”
Why does economic progress remain so uneven? Why do many Filipinos still feel insecure despite headline growth? Why does development seem visible in some places, but absent in many others? These are difficult questions, but they are also important questions.
One purpose of Philippine Life Guide is to explore these issues honestly. This website is not only about travel, retirement, food, or daily life. It is also about trying to understand the deeper realities of the Philippines: its opportunities, contradictions, strengths, and challenges.
The Philippines becoming an upper-middle-income country is meaningful. But the real success will come when that status is felt not only in international reports, but also in the everyday lives of ordinary Filipinos.
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