Go bullish on growth, middle-income status in 2026

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December 20, 2025 | 12:00am

MANILA, Philippines — The economic team is taking active steps to boost growth, create jobs and raise per capita earnings, expressing optimism that the Philippines could attain upper-middle-income status as early as next year.

Finance Secretary Frederick Go said he remains hopeful of this upgrade despite uncertainties in the foreign exchange environment.

“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 is the problem. But to answer your question directly, yes I am hopeful,” he said.

The peso fell to a new all-time low against the greenback on Dec. 9, hitting 59.22 per dollar and surpassing its previous record of 59.17 set on Nov. 12.

In July, the World Bank maintained the Philippines’ classification as a lower-middle income country, with the nation falling short of the income threshold necessary to qualify for an upgrade.

The country’s gross national income per capita reached $4,470 in 2024, which was $26 short of the $4,496 benchmark needed to achieve the classification of an upper-middle-income economy status.

Go said that the economic team is pursuing measures to generate employment and increase per capita income.

“The steps being taken by the economic team is to grow the economy and make sure that the people, again we go back to jobs, are earning at that per capita number. So our strategy is to grow the economy and make sure no one is left behind,” Go said.

Latest Philippine Statistics Authority data showed that unemployment rose to 2.54 million in October, highlighting a decline in job quality as more Filipinos found jobs but were unable to be absorbed into employment.

“I believe our economy will grow,” Go said.

Former Finance Secretary Ralph Recto projected that the Philippine economy is likely to grow between 4.7 percent and 4.8 percent this year, falling short of the government’s original target range of 5.5 to 6.5 percent.