6.5 million Filipinos lifted out of poverty – PSA

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August 22, 2026 | 12:00am

From 2023 to 2025

MANILA, Philippines — An estimated 6.5 million Filipinos were lifted out of poverty between 2023 and 2025 as the poverty incidence fell to its lowest rate last year.

The 2025 Full-Year Poverty Statistics released by the Philippine Statistics Authority (PSA) yesterday showed that poverty incidence declined to 9.7 percent last year from 15.5 percent in 2023 and 18.1 percent in 2021.

Last year’s poverty incidence, the lowest ever, showed the country achieving the single-digit poverty target under the Philippine Development Plan three years ahead of schedule.

In terms of magnitude, the number of Filipinos considered poor or living below the poverty threshold declined to 11.08 million last year from 17.54 million in 2023.

“For the first time, fewer than one in 10 Filipinos is living below the poverty line,” Department of Economy, Planning and Development (DEPDev) Secretary Arsenio Balisacan said.

“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,” he added.

The poverty rate declined as sustained economic growth, easing inflation and favorable labor market conditions led to more economic opportunities from 2023 to 2025.

DEPDev said that gross domestic product growth averaged 5.1 percent in 2024 and 2025.

Over the same period, inflation averaged 2.5 percent, while average unemployment stood at four percent.

PSA data also showed that nominal incomes went up by about 22 percent across income deciles between 2023 and 2025, well above the cumulative inflation of five percent over the same period.

DEPDev said this shows that income growth was felt across the income distribution.

Despite the significant progress, Balisacan said that further poverty reduction may moderate amid headwinds this year.

“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.

Earlier, he said that elevated inflation could slow or even reverse the country’s poverty reduction gains.

While headline or overall inflation eased to 6.2 percent in July from 6.4 percent in June, it remained above the government’s two to four percent target band.

From January to July, inflation averaged five percent, also higher than the target.

Apart from high inflation, economists have also flagged the country’s weak growth as another challenge to further poverty reduction.

In the second quarter, the economy grew by 2.3 percent, the weakest in five years, as the Middle East conflict and flood control controversy weighed on consumption and investment.

Average growth in the first half was 2.6 percent, below the government’s revised 3.5 to 4.5 percent growth target for the year.

“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,” Balisacan said.