The Philippine Statistics Authority (PSA) reported a notable decrease in the number of Filipinos living below the poverty line in 2023. According to the Full Year Official Poverty Statistics, poverty incidence declined from 18.1% in 2021 to 15.5% in 2023, reducing the number of poor Filipinos from 19.90 million to 17.54 million.
Economic Growth Philippines: Rising Wages and Employment Drive Poverty Reduction
Government officials attribute this improvement to rising wages and higher employment rates. National Statistician and Civil Registrar General Usec. Claire Dennis Mapa highlighted that wage growth has outpaced inflation, leading to better financial stability for low-income households. This trend aligns with the government’s commitment to reducing poverty to single-digit levels by the end of President Ferdinand Marcos Jr.’s term.
Philippines’ Poverty Rate and the 2023 Poverty Threshold
The PSA determines poverty status based on the poverty threshold, set at ₱13,873 per month for a family of five in 2023. Families earning above this amount are not classified as poor. This threshold accounts for both food and non-food expenses.
- Food threshold: ₱9,581 per month (₱64 per person per day)
- Non-food expenses: The remaining portion covers housing, education, transportation, and other necessities.
Criticism of PSA Poverty Statistics: Concerns Over Realistic Living Costs
Despite the reported decline, peasant groups and labor organizations argue that these figures do not fully reflect reality. Amihan, a peasant organization, criticized the PSA’s poverty threshold, calling the ₱64 daily food budget per person unrealistic.
Cathy Estavillo, Secretary General of Amihan, pointed out that a family of five requires ₱572 to ₱580 per day to afford three meals a day. She urged policymakers to reassess the poverty benchmarks and experience market conditions firsthand to understand the real cost of living.
Among the 18 regions in the Philippines, 11 recorded significant poverty reductions. Caraga demonstrated the most progress, cutting its poverty rate by 11 percentage points to 14.9%.
Both the PSA and the National Economic and Development Authority (NEDA) are considering revising the poverty threshold next year to ensure a more accurate reflection of economic conditions.
While the PSA’s data indicates progress, the challenge remains in ensuring that economic gains benefit all sectors. The ongoing debate on poverty thresholds underscores the need for continuous monitoring and policy adjustments to provide a realistic and comprehensive representation of poverty in the Philippines. Midori Business News Philippines continues to track economic trends and policy changes to keep readers informed.
