MANILA – The Philippines has been reclassified as an upper-middle income country after its gross national income (GNI) per capita surpassed the World Bank’s threshold for the category.

In its latest income assessment released Wednesday, the World Bank said the country’s GNI per capita reached USD4,850, exceeding the USD4,636 benchmark for upper-middle income economies.

For the current fiscal year, the World Bank classifies economies with a GNI per capita of USD1,175 or less as low income; between USD1,176 and USD4,635 as lower-middle income; between USD4,636 and USD14,375 as upper-middle income; and above USD14,375 as high income.

The Philippines joined Jordan, Micronesia, Sri Lanka and Vietnam in moving from lower-middle income to upper-middle income status.

In a separate blog, the World Bank attributed the country’s reclassification to broad-based economic expansion.

“The Philippines achieved its reclassification through broad-based expansion. GDP (gross domestic product) grew at an average of 5.8 percent per year over five years, reflecting gains across all major industries, not a single sector boom, but an economy-wide shift,” the World Bank said.

The Department of Economy, Planning, and Development (DEPDev) said the country’s new classification was driven by sustained economic growth, sound macroeconomic management and long-term structural reforms.

“This confirms the resilience of the Philippine economy. Despite global and domestic shocks, we have relentlessly pursued inclusive growth, strengthened fundamentals, and remained on track with our development agenda,” DEPDev Secretary Arsenio Balisacan said.

According to DEPDev, the country’s upper-middle income status is expected to improve its credit profile, increase investor confidence and attract more financing and high-quality investments that could generate better jobs for Filipinos.

While some concessional Official Development Assistance (ODA) may gradually decline, Balisacan said the benefits of stronger economic fundamentals and improved access to financial markets are expected to offset the adjustment.

“We welcome this recognition of our progress and we commit to deepen reforms to sustain our economic development,” Balisacan said.

Balisacan also recognized the contribution of overseas Filipino workers (OFWs), noting that their income abroad forms part of the country’s GNI.

“Our OFWs have played an important role in reaching this milestone. At the same time, our long-term goal is to create more high-quality jobs at home so overseas employment becomes a choice, not a necessity,” he said.

Despite the country’s new classification, Balisacan said challenges remain, particularly in addressing income inequality.

“We acknowledge that income disparities persist, and many continue to face economic difficulties. Our priority is to ensure that growth becomes more inclusive, and that its benefits reach all Filipinos,” Balisacan said.