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Helen Flores - The Philippine Star
March 1, 2026 | 12:00am
Executive Secretary Ralph Recto.
MANILA, Philippines — The Philippines is close to achieving its much-coveted upper middle-income country (UMIC) status this year and is now setting its sights on higher growth targets, according to Executive Secretary Ralph Recto.
Recto said the Philippines recorded a gross national income (GNI) per capita of $4,470 in 2024 – just $26 shy of the $4,496 UMIC threshold.
“Twenty-six dollars – roughly the cost of five cups of coffee. That is how close we are,” Recto told a global audience of businessmen on Thursday.
Citing World Bank internal projections, he said the country is expected to cross the threshold this year, and accelerate further, with GNI per capita seen to reach $6,119 by 2029.
“But claiming that coveted status is but a lap, a pit stop, in a never-ending race. Because improving the lives of every Filipino has no finish line,” the Executive Secretary said.
“Our strong fundamentals, disciplined fiscal management, and a bold reform agenda will push us forward,“ he said. “Above all, there is no deficit in our resolve,” he said.
The “lynchpin is clean, credible, and accountable governance” that boosts investor confidence and sustains growth, Recto said.
Recto stressed the 6.793-trillion national budget this year, with its historic-high investment in education, healthcare, agriculture, and social protection, will fund development goals.
On top of this is P1.3-trillion for the “Build Better More” to modernize transportation and ICT infrastructure to spur job-creating commerce and connectivity in the regions, he added.
He said a reform-pivot in public construction “is tapping local governments in identifying and implementing projects.”
These will be done while observing “fiscal discipline,” Recto said, with the deficit to be trimmed down to 4.3 percent of the gross domestic product or GDP by 2028 through stronger revenues and prioritized spending.
Recto said the government is also committed to accelerating structural reforms so the Philippines can compete as an investment haven in the region.
“We will unlock more private investments in agriculture; streamline merger review to promote fair competition; cut regulatory red tape; and expand digitalization and transparency,“ he said.
