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.