THE Philippines recorded its lowest poverty incidence on record at 9.7 percent in 2025, bringing the country below the 10-percent mark three years ahead of the target set under the Philippine Development Plan.
The Philippine Statistics Authority, in its 2025 Full-Year Poverty Statistics released Friday, Aug. 21, 2026, said the number of Filipinos living below the poverty threshold fell to 11 million in 2025, from 17.5 million in 2023.
That means about 6.5 million Filipinos moved above the poverty threshold over the two-year period.
“For the first time, fewer than one in ten Filipinos is living below the poverty line,” Department of Economy, Planning, and Development (DEPDev) Secretary Arsenio Balisacan said in a statement.
Balisacan said the milestone shows that expanding economic opportunities, combined with social protection programs, can improve household welfare.
What drove the decline
From 2023 to 2025, the economy continued to expand while inflation moderated and labor-market conditions remained generally favorable.
Real gross domestic product growth averaged 5.1 percent in 2024 and 2025, while inflation averaged 2.5 percent and unemployment averaged 4 percent, according to DEPDev.
PSA data also showed that nominal household incomes increased by about 22 percent across income deciles between 2023 and 2025, compared with cumulative inflation of five percent during the same period.
The figures indicate that household incomes grew faster than prices during the period, improving families’ purchasing power.
Did ‘ayuda’ help
Balisacan also credited targeted government assistance for helping reduce income gaps and make poverty reduction more responsive to economic growth.
Among the programs he cited were the Pantawid Pamilyang Pilipino Program, Social Pension Program, Kadiwa, Walang Gutom Program, Tulong Panghanapbuhay sa Ating Disadvantaged/Displaced Workers, and the Department of Labor and Employment’s Integrated Livelihood and Emergency Employment Program.
These programs provided income support, livelihood opportunities, employment assistance and other forms of aid to vulnerable households and workers.
Is poverty now solved
No.
Despite the record-low poverty rate, 11 million Filipinos remained below the poverty threshold in 2025.
The government also expects the pace of poverty reduction to become more challenging in 2026 as economic conditions become less favorable.
“Current developments may slow the pace of poverty reduction, but early indications do not point to a reversal of the gains we have achieved,” Balisacan said.
He said the government’s priority in the final years of the administration would be to prevent families that have moved out of poverty from falling back into it.
That will require stronger economic growth, increased investment and productivity, more jobs, skills training for emerging industries, and timely assistance for businesses and workers affected by economic and climate-related disruptions.
The 2025 figures mark a historic improvement in the country’s poverty situation. But with millions of Filipinos still below the poverty threshold, the next challenge is to sustain the gains and make sure those who have escaped poverty do not fall back into it. / PNA
