Part 2: Rising GDP per Capita and the Filipino Middle Class

It seems like the Philippine population, just like the Philippine economy, is stuck. The country has been stuck as a lower middle-income economy for the past 48 years. As a result, 80+% of Filipino households have been stuck below the middle-class threshold.

We expect this to change in the next 15 years, with GDP per capita finally breaching the $5,000 mark by 2028. This rise in per capita income will (1) expand the middle-class, which – in turn – will fuel future economic growth through (2a) an increase in the household savings rate and (2b) a change in the composition of the consumer basket. Allan Jr Tripon, CPA, CFA