Record-Low Poverty Rate
The Philippines recorded its lowest poverty rate on record in 2025, with poverty incidence falling to 9.7 percent from 15.5 percent in 2023, according to full-year data from the Philippine Statistics Authority (PSA). This marks the first time fewer than one in 10 Filipinos lived below the official poverty line, hitting the Philippine Development Plan's target ahead of its original 2028 schedule.
Economic Planning Secretary Arsenio M. Balisacan said in a statement on Friday, Aug. 21 that reaching the milestone ahead of schedule "demonstrates that expanding economic opportunities, complemented by effective social protection, can make a meaningful difference in people's lives." He attributed the improvement to economic growth, moderating price pressures, and resilient employment conditions.
The economy expanded at an average real GDP rate of 5.1 percent over 2024 and 2025, with inflation averaging 2.5 percent and unemployment averaging four percent during the period. Nominal household incomes grew by about 22 percent across all income deciles between 2023 and 2025, outpacing cumulative inflation of five percent.
Skepticism Over the 'Lifted Out of Poverty' Figure
While the Manila Bulletin celebrated the "historic drop," The Manila Times took a more critical stance, challenging the claim that approximately 6.5 million Filipinos were lifted out of poverty. In an opinion piece, The Manila Times argued that moving above an "artificial" poverty threshold does not equate to escaping poverty, calling the headline "6.5 million Filipinos lifted out of poverty" bordering on "fake news."
The Manila Times noted that SWS self-rated poverty rose from 47 percent in 2023 to 49 percent in June 2026, and cited IBON research group's estimate that about 70 million Filipinos (62 percent) live in poverty, earning P22,000 per month or less. PSA's poverty threshold per capita was P96 daily in 2025, slightly up from P91 in 2023, while the average income of the poorest decile was P85 daily and the second decile P123 daily.
Ateneo economist Leonardo Lanzona was quoted saying that PSA's own chief statistician admitted the food budget behind the poverty threshold was too low to meet basic nutrition and that the fix had not yet been applied. The Manila Times also raised questions about how so many Filipinos became non-poor in just two years, noting that GDP growth slowed from 6.4 percent in 2023 to 4.4 percent in 2025, with no new industries emerging.
Balisacan's Warning and Future Outlook
Despite the celebratory tone, Balisacan warned that the pace of poverty reduction could slow, emphasizing the need for targeted investment, workforce upskilling, and shock-responsive social protection to prevent vulnerable families from slipping back below the poverty line amid global economic headwinds. The Manila Bulletin reported that there are 4.7 million minimum-wage workers earning P695 per day, according to the labor department.