# World Bank Reclassifies Philippines and Vietnam as Upper-Middle-Income Economies

*2026-07-06 14:09 UTC · Business · 1 min read*

> The World Bank has reclassified the Philippines and Vietnam as upper-middle-income economies based on 2025 income data.

The World Bank has classified the Philippines and Vietnam as upper-middle-income economies, ending the Philippines' nearly four-decade run in the lower-middle-income bracket. Jordan, Micronesia, and Sri Lanka also moved up into the same tier this year.

The upgrade is based on 2025 gross national income (GNI) per capita: the Philippines reached $4,850 and Vietnam $4,970, both above the World Bank's $4,636 upper-middle-income threshold. The Philippine economy grew an average 5.8% annually over five years on broad-based gains across industries, while Vietnam posted 8% growth in 2025, driven by an export boom and a surge in foreign direct investment tied to the U.S.-China trade war.

Philippine economic planning secretary Arsenio Balisacan called it proof the country has "relentlessly pursued inclusive growth" despite shocks like Typhoon Ragasa. Economists caution the milestone is a statistical benchmark rather than a sign of improved household finances, and could reduce both countries' access to concessional World Bank financing going forward.

## Sources

- [fortune.com](https://fortune.com/2026/07/03/vietnam-philippines-world-bank-upper-middle-income-trap/)
- [bworldonline.com](https://bworldonline.com/top-stories/2026/07/02/760634/philippines-now-an-upper-middle-income-country-world-bank-says/)

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TechTools News · https://techtools.cz/tools/news/article/1957-world-bank-reclassifies-philippines-and-vietnam-as-upper-middle-income-economies
Česká verze: https://techtools.cz/tools/news/clanek/2030-svetova-banka-zaradila-filipiny-a-vietnam-mezi-zeme-s-vyssimi-strednimi-prijmy