PHL new upper-middle-income status should spur human capital investments – CPD, UNFPA

The recent classification of the Philippines as an upper-middle-income country (UMIC) should spur more investments in human capital, such as education and healthcare, to help young Filipinos realize their aspirations and contribute to long-term economic growth, according to concerned organizations on Thursday.

“(The country’s recognition as a UMIC) should translate into more educational and health services,” Lolito R. Tacardon, deputy executive director of the Commission on Population and Development (CPD), told reporters on the sidelines of a forum celebrating the upcoming World Population Day 2026.

“And this can eventually result in more quality human resources that can contribute later to our socio-economic development,” he added.

The World Bank announced exactly a week ago that it had elevated the country’s income classification to upper-middle-income from lower-middle-income, where it had remained for nearly four decades.

This came after the Philippines reached a gross national income (GNI) per capita of $4,850, within the World Bank’s GNI per capita range for UMICs of $4,636 to $14,375.

The Department of Economy, Planning, and Development (DEPDev) said the new classification could strengthen the country’s credit profile, boost investor confidence, and expand access to financing and higher-quality investments, resulting in better jobs for Filipinos.

Meanwhile, the Philippines’ young population, coupled with its recent recognition as a UMIC, presents an opportunity to invest more in young people by creating an environment that supports their aspirations, Neus Bernabeu, country representative in the Philippines for the United Nations Population Fund (UNFPA), told BusinessWorld.

“The number of young people that the Philippines has, that is around 50% of the population. It’s an opportunity to invest better the resources in assuring human capital, in assuring the development of these young people,” Ms. Bernabeu said in an interview.

The youth aspirations forum in Mandaluyong City was held in celebration of the upcoming World Population Day 2026 on Saturday, an event that aims to raise awareness of urgent global demographic issues. The forum was led by the CPD and the UNFPA. — Edg Adrian A. Eva