After income upgrade, what investors are waiting for Philippines to fix
The Philippines has been reclassified as an upper-middle-income economy by the World Bank, but experts warn this does not automatically guarantee increased foreign investment. Analysts suggest the country must still address infrastructure and governance gaps to remain competitive.
Why it matters
This highlights the distinction between economic classification and actual market competitiveness for emerging nations in Southeast Asia.
MANILA, Philippines - The Philippines has moved up the World Bank's income ladder. Now it has to show investors it can compete there.
The country's recent reclassification as an upper-middle-income economy gives it a stronger marker of credibility, but it does not automatically make the Philippines a more competitive market for foreign investment, strategic advisers from global management consulting firm Kearney said.
Kearney country head Marco Dela Rosa and managing partner Varun Arora said the country's weak spots, including infrastructure and governance, remain key concerns for investors weighing the Philippines against its neighbors.
Last week, the World Bank reclassified the Philippines as an upper-middle-income country after it posted gross national income per capita of $4,850 this year, above the $4,636 threshold for the income bracket.
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