Ralph Recto Says the Philippines Is Just $26 Away From Upper Middle-Income Status — 'Roughly the Cost of Five Cups of Coffee'

Executive Secretary Ralph Recto made a bold claim to an audience of international business leaders on Thursday: the Philippines is just $26 away from being classified as an upper middle-income country. The nation recorded a gross national income (GNI) per capita of $4,470 in 2024 — just shy of the $4,496 threshold required by the World Bank.

"Twenty-six dollars — roughly the cost of five cups of coffee. That is how close we are," Recto told the audience. It's a catchy soundbite, and the numbers back it up. World Bank projections expect the Philippines to cross the threshold this year, with GNI per capita seen to reach $6,119 by 2029.

But Recto was quick to temper expectations. "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," he said. In other words: the label matters, but what matters more is whether ordinary Filipinos actually feel richer.

Upper middle-income status would place the Philippines alongside countries like Brazil, Mexico, and Thailand. It would also potentially affect the country's eligibility for certain types of development aid and concessional loans — a double-edged sword, since some forms of international assistance diminish as a country "graduates" to higher income brackets.

For many Filipinos, the $26 gap might feel ironic. Minimum wage workers earning around ₱600 a day know that five cups of coffee is hardly pocket change. The macroeconomic achievement is real — pero hanggang hindi ramdam ng mga tao sa araw-araw, it's just a number on paper.

Source: The Manila Times