The administration of President Ferdinand R. Marcos Jr. says the Philippines remains on track to achieve upper middle-income status and further cut poverty rates within the President’s term, even as global uncertainties weigh on growth prospects.
At a Palace briefing on Wednesday, Presidential Communications Office Undersecretary Claire Castro said the World Bank is set to assess by July 2026 whether the country has met the income threshold for upper middle-income classification, based on its 2025 economic performance. The update, she said, was relayed by Economy, Planning, and Development Secretary Arsenio Balisacan.
While formal reclassification may still require several years of sustained economic performance, the government remains optimistic. In a statement, Balisacan said authorities are confident the milestone can be reached before the end of the Marcos administration, underscoring ongoing efforts to stabilize the economy and reinforce social protection systems.
He acknowledged, however, that reform momentum has softened alongside declines in public investment and business confidence. These challenges mirror broader regional trends, with several Asian economies expected to fall short of growth targets amid persistent supply chain disruptions and geopolitical tensions, including instability in the Middle East.
To cushion the impact of external shocks, the government has rolled out a series of mitigation measures. Castro cited Executive Order No. 110, which declared a national energy emergency, as a key step in addressing rising fuel costs.
Targeted interventions include fuel subsidies, temporary tax suspensions on liquefied petroleum gas and kerosene, transport fare discounts, and cash assistance for affected drivers.
The administration has also expanded its P20-per-kilo rice initiative, scaled up TUPAD emergency employment, and increased subsidies for farmers and fisherfolk to bolster food security and ease inflationary pressures.
