Philippines Reaches Upper Middle Income Status Amid Political Turmoil

The World Bank has designated the Philippines as an Upper Middle Income Country, citing a per capita income of $4,850. The Philippine Statistics Authority reported that poverty incidence fell to a historic low of 9.7 percent in 2025, reaching this milestone three years ahead of schedule. The country also maintained investment-grade credit ratings from Moody's and Rating and Investment Information Inc.

Despite these economic gains, the administration of Ferdinand Marcos Jr. is pursuing a wide-ranging anti-corruption drive. Executive Secretary Ralph Recto stated the president's order is to support the middle class and prevent citizens from sliding back into poverty.

This crackdown has led to significant legal challenges for the Duterte family. Vice President Sara Z. Duterte is currently facing a Senate impeachment trial on charges of bribery, unexplained wealth, grave threats, and the misuse of confidential funds. Meanwhile, former President Rodrigo Duterte has been detained in The Hague since March 11, 2025, to face trial for crimes against humanity.