Philippines To Become An Upper-Middle Income Country In 2019
The Socioeconomic Planning Secretary Ernesto Pernia said on Tuesday that the Philippines will soon reach an upper-middle income status as early as next year. Despite the economic expansion’s slower pace in the first half of 2018, the country’s growth momentum remained. The growth in the Philippines can be attributed to the investments instead of the consumption.
Based on the World Bank’s definition of an upper-middle income economy, a country should have a per capita income of $3,896 to $12,055.
In a briefing held by economic managers, Pernia stated:
“The Philippines is also slated to become an upper-middle income country by 2019, as early as 2019, not 2022, with a per capita income of more than $4,000.”
With that shift in economic ranking, the Philippines will be on par with China, Malaysia, and Thailand, who are upper-middle income countries under the World Bank classification. Meanwhile, Taiwan, Singapore and Japan are dubbed as high-income economies with incomes of $12,056 or more.
The Philippines’s current per capita income is $3,541 which roughly translates to ₱192,000, and is classified as a lower middle income, along with Myanmar, Laos, Vietnam, Indonesia, and India. The government is aiming for a medium-term growth target of 7 to 8 percent.