Poverty in the Philippines
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Despite improvements in recent years, poverty in the Philippines remains high, and the pace of poverty reduction has been slower compared to other East Asian countries. Economic growth in the Philippines was less inclusive and slower than in high-performing neighbors, resulting in a lag in poverty reduction. Between 2006 and 2015, the country's poverty rate, measured by the international poverty line (US$1.90/day), declined by only 0.9 percentage points annually, compared to 2–2.5 percentage points in China, Indonesia, and Vietnam. When measured by the lower-middle-income-class poverty line (US$3.20/day), poverty declined by just 1.3 percentage points annually, while same three countries saw reductions of 3–5 percentage points.
In 2023, the Philippine Statistics Authority (PSA) set the national poverty threshold at ₱13,873 per month for a family of five (approximately US$250), or about ₱92.49 per person per day (around US$1.67). Individuals are considered "poor" if their income falls below this threshold, which is intended to cover basic food and non-food needs. However, the PSA acknowledged that the food component of this threshold was not sufficient to meet the minimum daily dietary or nutritional requirements, suggesting that even those not classified as "food poor" may still be undernourished.
In 2023, official government statistics reported that the Philippines had a poverty rate of 15.5%, (or roughly 17.54 million Filipinos), significantly lower than the 49.2 percent recorded in 1985 through years of government poverty reduction efforts. From 2018 to 2021, an estimated 2.3 million Filipinos fell into poverty amid the economic recession caused by the COVID-19 pandemic.
National Economic and Development Authority (NEDA) deputy director general Rosemarie Edillon attributed the overall decline of poverty in the Philippines to a generally low and stable inflation, improved incomes, and higher employment rates during the period.
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