PH poverty rate falls to 'lowest-ever' 9.7% in 2025 —DEPDev

The Philippines posted a 9.7% poverty incidence rate in 2025, the “lowest-ever” rate, hitting the single-digit target under the Philippine Development Plan (PDP) three years ahead of schedule, according to the Department of Economy, Planning, and Development (DEPDev).

Citing the 2025 full-year Poverty Statistics released by the Philippine Statistics Authority (PSA) on Friday, the DEPDev said that “6.5 million Filipinos were lifted out of poverty between 2023 and 2025.”

This as the number of Filipinos living below the poverty threshold—P14,634 monthly income for a family of five—fell from 17.5 million in 2023 to 11 million in 2025.

“For the first time, fewer than one in 10 Filipinos is living below the poverty line,” said 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,” said Balisacan.

The DEPDev said that from 2023 to 2025, economic opportunities expanded amid sustained GDP growth, moderating inflation, and generally favorable labor-market conditions.

It said that during 2024 and 2025, the real GDP growth rate averaged 5.1%, while inflation averaged 2.5%.

Meanwhile, unemployment remained “comparatively low” at an average of 4%, according to the DEPDev.

The Economic Planning Department noted that PSA data also showed that nominal incomes increased by about 22% across income classes or deciles between 2023 and 2025 —“well above the cumulative inflation rate of 5% over the same period,” indicating that income growth “was broadly inclusive, benefiting households across the income distribution.”

Balisacan also said that targeted assistance and government programs—including the Pantawid Pamilyang Pilipino Program (4Ps), Social Pension Program, KADIWA, Walang Gutom Program, Tulong Panghanapbuhay sa Ating Disadvantaged/Displaced Workers (TUPAD), and DOLE Integrated Livelihood and Emergency Employment Program (DILEEP)—have helped narrow income gaps over the years.

The country’s chief economist, however, cautioned that the pace of poverty reduction is likely to moderate amid the more challenging economic environment in 2026.

“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.

“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,” he said. —AOL, GMA News