Philippines poverty rate fell to 15.5% in 2023

Poverty incidence in the Philippines fell to 15.5 percent in 2023 from 18.1 percent in 2021, and the National Economic and Development Authority (NEDA) expects this to further ease to a single-digit level by 2028.

The 2023 full-year official poverty statistics released by the Philippine Statistics Authority (PSA) Monday showed that the number of Filipinos living in poverty decreased by 2.45 million to 17.54 million in 2023 from nearly 20 million in 2021.

NEDA said the latest figure surpassed the government’s development target for poverty incidence in 2023, which was set at 16 percent to 16.4 percent in the Philippine Development Plan 2023-2028.

Data show that in terms of poverty incidence among families, the rate also saw a notable decline to 10.9 percent in 2023 from 13.2 percent in 2021. This corresponds to a decrease in the number of impoverished families from 3.5 million in 2021 to 3.0 million in 2023.

“These encouraging figures underscore our unwavering commitment to implement effective policies and initiatives that uplift the lives of our countrymen. As we welcome news of our progress, we remain steadfast in our efforts to ensure that our economic gains are truly felt by all Filipinos, rich and poor alike,” said NEDA Secretary Arsenio Balisacan.

NEDA said the number of food-poor families decreased to 740,000 in 2023 from 1.04 million families in 2021, marking a reduction of 300,000 families. In terms of population, the number of food-poor individuals also dropped from 6.55 million in 2021 to 4.84 million in 2023, a decrease of 1.71 million individuals.

The country’s average per capita income increased by 17.9 percent between 2021 to 2023, outpacing the 15.3-percent rise in the annual per capita poverty threshold during the same period. The mean per capita incomes of the first, second and third decile classes also recorded significant increases at 25.3 percent, 22.9 percent, and 22.2 percent, respectively.

“High inflation during the first half of 2023 likely partially offset the positive effects of income growth on poverty reduction. The decline in poverty could have been sharper had inflation been more moderate. But what is perhaps most encouraging to see is that mean per capita incomes for the poorest Filipinos—those belonging to the bottom deciles—grew quite fast, faster than those in the top decile classes and faster than the rate at which the poverty threshold grew. In other words, economic growth was progressive,” said Balisacan.

“Having said that, the policy implications are clear: food security remains a top government priority. We know what we have to do to ensure that food is available, accessible, affordable, and nutritious. We must boost agricultural productivity; invest massively to improve our infrastructure and markets; effectively manage food prices through supply- and demand-side interventions; and strengthen targeted interventions to enhance health outcomes,” Balisacan said.