Philippines’ income upgrade hides grim reality for most Filipinos
Persistent inflation, slowing productivity and a fragile labour market reveal an economy far from true transformation
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[MANILA] The World Bank’s decision to classify the Philippines as an upper-middle-income country was a long-awaited milestone for Manila after it missed the mark by a mere US$26 last year.
The upgrade, announced last week, was largely due to a multisectoral expansion that lifted its gross national income (GNI) per capita to US$4,850.
While the Marcos administration touted the income graduation as a validation of the country’s macroeconomic resilience, beneath the upgrade lies a less rosy reality. Persistent inflation, slowing productivity and a fragile labour market suggest that the country’s ascent on the income ladder has yet to translate into broad-based gains.
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