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Saturday, July 13, 2024

Philippines per capita income hits $4,230, nears upper middle-income status

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The Philippines surpassed its gross national income (GNI) per capita target for 2023 under the Philippine Development Plan (PDP) 2023-2028, reflecting the country’s robust economic growth and solid macroeconomic fundamentals, according to the National Economic and Development Authority (NEDA).

The World Bank reported on July 1, 2024 that the country’s GNI per capita reached record $4,230 in 2023, marking a 7.1-percent increase from the preceding year. This topped the 2023 target range of $4,130 to $4,203 GNI per capita set in the PDP 2023-2028.

“Achieving the GNI per capita target for 2023 solidifies our trajectory toward attaining upper middle-income country (UMIC) status within the next two years. However, our mission is far from complete. While we, of course, welcome news of such progress, what matters more to us is that the fruits of economic growth—opportunities, better jobs and higher incomes—are felt by all Filipinos, especially the poor. The government must persist in its efforts to ensure that our economic gains are shared equitably, with the aim of reducing the poverty rate to a single-digit level by 2028,” said NEDA Secretary Arsenio Balisacan.

The World Bank defines UMIC economies as those with GNI per capita ranging between $4,516 and $14,005 for the fiscal year 2025. “With current data, estimates suggest that the Philippines is poised to achieve UMIC status by 2025, provided the economy sustains a robust growth rate in 2024 and 2025,” NEDA said.

GNI per capita measures the economic output per citizen, encompassing both domestic and international earnings. A higher GNI per capita is one indication of greater economic prosperity and a higher standard of living.

“The expected transition to Upper Middle-Income Country status is an indication that we are headed in the right direction. More importantly, I should say, our focus now is on sustaining the momentum. We are working double time to further improve the policy and regulatory environment to enable a balanced mix of industries that will sustain the growth of the Philippine economy in the years to come. With our accelerated infrastructure drive enhancing connectivity across the country, we also want more of our lagging regions contributing to our growth as we also push for inclusivity. More than hitting a number, the ultimate goal is to improve our people’s lives,” said Balisacan.

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