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President Ferdinand Marcos Jr. on July 2, 2026 (July 3 in Manila) says that he is not worried about the country's potential loss of certain developmental grants after the World Bank’s reclassification of the Philippines as an upper middle-income economy. In a joint press conference with Canadian Prime Minister Mark Carney at Vancouver Convention Center, Marcos said he viewed this transition not as a loss, but as a sign of economic confidence that would attract more direct investments. For his part, Carney echoed the President’s statement on the importance of the private sector in ushering development. Carney also underscored the importance of the rule of law, respect for human rights, and transparency as important elements for economic development.

VIDEO BY CATHERINE VALENTE

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Transcript
00:00We have been in low, we were still in the lowest strata of the middle income economy since 1987.
00:10And it is just as well that it is about time that we move up that strata.
00:16We have changed that category somewhat.
00:19We certainly still have ways to go, but I think that in terms of economic growth,
00:29and in terms of being able to identify the sectors in our economy,
00:34and in our government as well, that need to be amended, that need to be modified, that need to be
00:42modernized really.
00:44And that I think that is what led to the World Bank giving us that recognition.
00:50Now that changes the rules a little bit for us,
00:53because we have to become less dependent on just straight out the foreign grants for example.
01:02I do not worry, we were discussing this earlier today,
01:06and I don't think that it will lead to an increase in interest rates for loans for example,
01:13but we do believe the effect will be on the grants that are given.
01:16But nonetheless, that means in a way that can be interpreted as the World Bank saying you no longer need
01:24that.
01:25And we will replace that with investment.
01:27And that I think is a very, very important development for the Philippines and its economy.
01:44Thank you for having me.
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