THE PHILIPPINES have remained a lower middle-income economy after a coronavirus pandemic brought the economy down last year, according to the World Bank.
The country’s per capita gross national income (GNI) fell 11% to $ 3,430 last year, from $ 3,850 a year earlier, based on updated data posted on the multilateral lender’s website .
This was within the lender’s income range for lower middle-income savings of $ 1,046 to $ 4,095 GNI per capita, which was increased from $ 1,036 to $ 4,045 last year to accommodate count offlation.
The World Bank has also increased its income range for the middle income group above GNI capital from $ 4,096 to $ 12,695, from $ 4,046 to $ 12,535.
The Philippines aims to transition to upper middle-income country status by 2022. It is also looking to achieve a long-term “A” credit rating next year, when it loses access to loans. concessional.
The government was still on track to be in the top income bracket by the second half of next year, Socio-Economic Planning Secretary Karl Kendrick T. Chua said on Sunday in a Viber message.
The record 9.6% drop in the economy’s economic output last year resulted in a drop in per capita GNI income, he said. His office estimates the country lost 2 trillion P2 in potential economic output last year amid coronavirus shutdowns.
The Philippines joined 54 other countries in the lower middle income category, which includes India, Indonesia, Laos, Myanmar, Timor-Leste and Vietnam.
The World Bank said other economies still managed to climb higher in income classifications despite the pandemic, such as Moldova, which is now an upper middle-income economy with a GNI per capita of 4. $ 570.
The countries that changed to lower middle income country status from low income economies were: Haiti, whose GNI per capita rose to $ 1,250, and Tajikistan with a GNI per capita of $ 1,060.
The economies that fell to a lower category were Belize, Indonesia, Iran, Mauritius, Panama, Romania and Samoa.
The Philippine GNI – the sum of its economic output and net income received from abroad – fell 11.4% in 2020, a complete turnaround from the 5.4% growth in 2019.
For the FiIn the first quarter, its GNI fell 10.9%, stronger than the 1.6% drop recorded a year earlier. – Beatrice M. Laforga