PHL optimistic about income goal

THE Philippine government remains confident it can achieve upper middle-income status and sustain poverty reduction during President Ferdinand R. Marcos, Jr.’s term, despite downgraded growth forecasts from the International Monetary Fund (IMF) and Moody’s Analytics.

Quoting the country’s chief economist Secretary Arsenio M. Balisacan, Palace Press Officer Clarissa A. Castro said the World Bank is set to assess by July 2026 whether the Philippines has met the income threshold based on its 2025 economic performance, though formal classification may take longer.

“We remain confident this will be achieved within the term of the Marcos administration. Despite geopolitical tensions and heightened uncertainty, we will stay the course in stabilizing the economy and centering social protection to sustain poverty reduction,” she added.

The IMF earlier slashed the country’s gross domestic product growth forecast to 4.1% in 2026, down from its initial 5.6% forecast in January. This is lower than the government’s 5%-6% growth target.

Moody’s, meanwhile, also trimmed its forecast for the country’s economy to grow by 4.9% in 2026, lower than its 5.1% projection earlier this year.

They cited the Middle East crisis and a sharp decline in public investment and confidence as reasons for the downward revision.

Ms. Castro said the government will still strive to lessen or prevent the adverse effects of the Middle East crisis from trickling down to the lives of Filipinos. — Chloe Mari A. Hufana