Vancouver, Canada – President Ferdinand Marcos Jr. said the Philippines’ transition to upper-middle-income status marks a major milestone that will also require it to rely less on foreign grants and more on long-term investment.
Speaking with Canadian Prime Minister Mark Carney after their bilateral meeting on Thursday, July 2, Marcos said the World Bank reclassification reflects years of economic reforms and modernization.
“I think, in terms of economic growth and being able to identify the sectors in our economy and in our government that need to be amended, modified and modernized, that is what led to the World Bank giving us that recognition,” Marcos said.
He said the country’s new economic status changes how development partners engage with the Philippines.
“Now that changes the rules a little bit for us because we have to become less dependent on just straight-out foreign grants,” Marcos said.
He said he does not expect the country’s borrowing costs to increase but acknowledged that grant assistance could decline.
“But nonetheless, that means, in a way, that can be interpreted as the World Bank saying we no longer need that, and we will replace that with investment,” Marcos said. “That, I think, is a very, very important development for the Philippines and its economy.”
Carney welcomed the Philippines’ upper-middle-income status, calling it a sign of sustained economic progress rather than short-term growth.
“It is a positive sign for the Philippines,” Carney said. “This doesn’t happen because of one good quarter. It reflects broader development that has been built over recent years.”
Carney also said the country’s economic progress raises expectations for governance and institutions.
“Rule of law, respect for human rights, transparency — all those elements are increasingly important as an economy develops,” he said.
He said Canada’s growing partnership with the Philippines, including ongoing negotiations for a free trade agreement, reinforces those principles.
“This is what progress is. You continue to raise the bar. You have partners who move up with you, and that’s what’s happening with Canada and the Philippines today,” the prime minister said.
