Philippines' poverty rate declines to 22.4%

The Philippines' poverty rate declined in the first half of 2023, though it remains significantly higher than the government's ambitious target, officials said Friday.

The Philippine Statistics Authority (PSA) reported the national poverty rate at 22.4% for the first six months, down from 23.7% in the same period of 2021. This translated to roughly 895,260 fewer Filipinos living in poverty.

Despite the decrease, the rate remains far above the government's aim of a single-digit poverty rate by 2028, set by President Ferdinand R. Marcos Jr. upon taking office.

Data also showed that poverty incidence among families declined to 16.4% in the first semester of 2023 from 18.0% in the same period of 2021.  This translated into 230,000 households escaping poverty.

NEDA Secretary Arsenio Balisacan acknowledged the gap but emphasized the government's commitment to the target. "While we are cautiously optimistic about the downward trend, we are fully aware of the remaining challenges," he said.

Officials attributed the improvement to the easing of COVID-19 restrictions and subsequent economic recovery. The gross domestic product grew at an average of 5.5% in the first three quarters of 2023, placing the Philippines among the top performers in Asia.

Balisacan pointed to declining unemployment and inflation, particularly for the poorest 30%, as encouraging signs. He credited government interventions like cash transfers and fuel subsidies for cushioning the impact of inflation on vulnerable households.

However, Balisacan also acknowledged that high inflation earlier in the year eroded some of the gains from income growth. He noted that per capita income for the poorest 10% of Filipinos actually would have increased more if inflation had been lower.

Looking ahead, Balisacan outlined several initiatives the government is undertaking to further reduce poverty, including implementing a social protection floor, creating high-quality jobs, and improving infrastructure.

He also said efforts to improve the fiscal situation through increased revenue collection and reduced deficits would free up resources for social programs and human capital development.