By Priam Nepomuceno | Philippine News Agency
The Department of Economy, Planning, and Development (DEPDev) on Friday said the Philippines recorded its lowest-ever poverty incidence of 9.7% in 2025, achieving the single-digit target under the Philippine Development Plan (PDP) three years ahead of schedule.
Likewise, the 2025 Full-Year Poverty Statistics released by the Philippine Statistics Authority (PSA) on Aug. 21 indicated that 6.5 million Filipinos were lifted out of poverty between 2023 and 2025.
The number of Filipinos living below the poverty threshold fell from 17.5 million in 2023 to 11 million in 2025.
“For the first time, fewer than one in ten Filipinos is living below the poverty line,” DEPDev Sec. Arsenio Balisacan said in a statement.
He also emphasized that reaching this milestone ahead of schedule demonstrates that expanding economic opportunities, complemented by effective social protection, can make a meaningful difference in people’s lives.
From 2023 to 2025, economic opportunities expanded amid sustained gross domestic product (GDP) growth, moderating inflation, and generally favorable labor-market conditions.
In 2024 and 2025, real GDP growth averaged 5.1%, inflation averaged 2.5%, and unemployment remained comparatively low at an average of 4.0%.
PSA data also showed that nominal incomes increased by about 22% across income deciles between 2023 and 2025—well above the cumulative inflation rate of 5.0% over the same period. This indicates that income growth was broadly inclusive, benefiting households across the income distribution.
Balisacan also noted that targeted assistance and government programs—including the Pantawid Pamilyang Pilipino Program (4Ps), Social Pension Program, KADIWA, Walang Gutom Program, Tulong Panghanapbuhay sa Ating Disadvantaged/Displaced Workers (TUPAD), and DOLE Integrated Livelihood and Emergency Employment Program (DILEEP)—have helped narrow income gaps over the years.
He added that these interventions have made poverty reduction more responsive to economic growth. Balisacan cautioned, however, that the pace of poverty reduction is likely to moderate amid the more challenging economic environment in 2026.
“Current developments may slow the pace of poverty reduction, but early indications do not point to a reversal of the gains we have achieved,” the DEPDev chief said.
“As we enter the final years of the administration, our priority is to ensure that families who have moved out of poverty do not fall back into it. Sustaining these gains will require a swift recovery in economic growth; continued efforts to increase investment, productivity, and job creation; upskilling and reskilling for emerging sectors; and timely support for businesses and workers affected by economic and climate-related disruptions,” he added.
