JULY 22, 2024 — Despite experiencing domestic and external challenges, the Philippines has made remarkable strides in reducing poverty levels between 2021 and 2023, marking significant progress toward the government’s ambitious target of reducing poverty incidence to a single-digit level by 2028, according to the National Economic and Development Authority (NEDA).

The 2023 Full Year Official Poverty Statistics, released today, July 22, by the Philippine Statistics Authority, showed that the poverty incidence among the population significantly dropped to 15.5 percent from 18.1 percent in 2021. This translates to a decrease of 2.45 million Filipinos living in poverty. Notably, this 15.5 percent poverty incidence is not just an improvement, but it surpasses the government’s development target for poverty incidence in 2023, which was set at 16.0-16.4 percent in the Philippine Development Plan 2023-2028.

In terms of poverty incidence among families, the rate also saw a notable decline to 10.9 percent in 2023, down 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 M. Balisacan.

Furthermore, 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 saw a significant decline, dropping 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 the NEDA chief.

“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 emphasized.

“At the same time, we continue to work on the creation of more and higher-quality jobs and human capital development to enhance Filipinos’ income-earning abilities. We must also strengthen our social safety nets by harnessing digital technologies so that the poor and vulnerable are partially shielded from economic shocks,” he added.

[Related: Toward a Food-Secure Philippines and a Stronger Agricultural Sector]

Balisacan underscored that the observed reduction in poverty, along with the attainment of the 2023 Gross National Income (GNI) per capita target under the Philippine Development Plan 2023-2028, signifies that the country is headed in the right direction.

[Related: PH achieves 2023 GNI per capita target, on track to reach Upper Middle-Income Status]

“With the right policies in place, and if we can accelerate our programs further, we can be confident that achieving a single-digit poverty rate by 2028 is within our reach. The government is resolute in its commitment to ensuring rapid, sustained, and inclusive economic growth. Despite the challenges, we will stay the course: together, we will ensure that no Filipino is left behind as we build a nation where prosperity is shared by all,” Balisacan concluded.

 

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