The Philippines will soon to be an upper middle income country in 2020, Socioeconomic Planning Secretary Ernesto Pernia revealed on Wednesday.
“Upper middle-income economies are those with a gross national income (GNI) per capita of USD3,996 to USD12,375, cited in the report from Philippine News Agency (PNA).
According to the PNA report, Pernia stated that the country will delay its advancement to become an upper middle class due to its backlogs that incurred in the first quarter of the year.
Pernia guaranteed that achieving the goal can be fulfilled next year.
Mentioned in the report that gross domestic product (GDP) in the first quarter of 2019 accounted the slowest rate since 2015 , 5.6 percent ( See full report of Philippines GDP growth slows down by 0.9 in Q1 of 2019). The setback of the GDP in the first quarter was attributed from the delay of the national budget for 2019.
Moreover, the GDP per capita of the Philippines breaks into USD 3,893.6 in 2018 which is higher than Vietnam ( See full figures here Pinoy Per capita GDP breaks US$ 3,000 level in 2018 ).
The National Economic and Development Authority (NEDA) Director-General also stated that when we achieve the upper middle class income, the country need to reassess its plans on the infrastructure program in order to determine the “doable”projects.
Due to the anticipated projects, the cost of borrowing money from the other country to fund the infrastructure project is getting higher.
“When we become an upper middle class country and we get credit ratings upgrades, we will get the lower commercial rates in the global financial market,” Pernia said.