Finance Secretary Frederick Go has expressed confidence that the Philippine government's goal of elevating the country to upper middle-income status by 2026 remains achievable. He outlined the administration's economic strategies to reach this critical milestone during an interview with journalists on Thursday, December 18, 2025.
The Path to Upper Middle-Income Status
Secretary Go clarified that the classification of a middle-income economy is defined by the World Bank based on a nation's gross national income (GNI) per capita. According to the latest World Bank standards, an upper middle-income economy is characterized by a per capita income ranging from US$4,496 to $13,935.
Currently, the Philippines is categorized as a lower middle-income economy, which encompasses countries with a per capita income between $1,136 and $4,495. Data released by the World Bank in July 2025 revealed that the Philippines' GNI per capita for 2024 stood at $4,470. This figure is a mere $26 short of the threshold required to graduate to the upper middle-income bracket.
Economic Strategy and Challenges Ahead
To bridge this narrow gap and secure the upgraded classification, Go emphasized the economic team's focused strategy. "Our strategy is to grow the economy and make sure that no one is left behind," he stated. The core of the plan involves stimulating robust economic growth and ensuring that job creation translates into higher average incomes for Filipinos, thereby lifting the per capita figure.
However, Secretary Go also acknowledged a significant external challenge. "One of the problems is, it's defined in dollars. So even if we grow in pesos, if the foreign exchange rate works against us, that's the problem," he explained. This means that peso-denominated growth can be diluted if the Philippine peso weakens significantly against the US dollar, the currency used for the World Bank benchmark.
Maintaining Hope Amidst Hurdles
Despite the foreign exchange volatility, the Finance Chief affirmed that the 2026 target is still in sight. When directly asked about the timeline, he responded, "Yes, I am hopeful. Because I believe our economy will grow and I shouldn't make foreign exchange predictions."
The government's commitment hinges on sustained economic expansion that is both inclusive and resilient enough to withstand global financial pressures. Achieving upper middle-income status is seen not just as a statistical milestone but as a reflection of broader improvements in the nation's economic health and the standard of living for its citizens.
