Disconnect spreads

Disconnect spreads | Daily Tribune

In one of the previous administrations, the economy underwent a so-called growth-poverty paradox in which the gross domestic product (GDP) expanded at a steady level of 6 percent. Still, the poverty level and hunger incidences remained either static or worsened.

The trend showing a non-inclusive economy appears to have returned based on recent surveys.

The data showed self-rated poverty at 52 percent and involuntary hunger doubling to 27.2 percent by March 2025, reversing earlier declines of 38 percent in poverty perception in 2019 and 11.6 percent in hunger in 2022.

How could this happen amid the claimed economic boom and the country about to clinch upper middle-income status?

While the country’s neighbors have solved the poverty conundrum, with the percentages of their populations in the marginal category nearing zero, Philippine figures are moving the other way.

A suspect is the low wages, against the recent 16-percent increase in food prices.

An economic expert indicated that the widespread lack of savings, with 74 percent of households without a nest egg, is exacerbated by policies that fail to ensure affordability and income growth.

The benefits of the robust economy are uneven, failing to reach people specially in regions in the Visayas and Mindanao. This highlights a disconnect between overall gains and household realities.

The recent survey indicated a reversal of earlier gains. Self-rated poverty rose in the Visayas, from 57 percent to 62 percent, and in Balance Luzon, from 43 percent to 46 percent, but fell in Mindanao (65 percent to 60 percent) and Metro Manila (46 percent to 41 percent) between February and March 2025.

The Visayas and Mindanao remain the most brutally hit, with 62 percent and 60 percent of households, respectively, considering themselves poor.

Borderline families dropped to 12 percent from 13 percent in February, with the one-percent likely joining those who consider themselves poor.

The report indicated that 27.2 percent of families (about 7.5 million) experienced hunger at least once in the past three months, a sharp rise from 11.6 percent (2.9 million families) in June 2022.

Think tank IBON highlighted the deep chasm between the average daily minimum wage of P469 and the P1,227 living wage for a family of five as of February 2025. This wide gap leaves families unable to meet basic needs.

According to Philippine Statistics Authority data, food prices rose by 16 percent from June 2022 to February 2025, further eroding purchasing power. High inflation, particularly for essentials, has outpaced wage growth, pushing more families into poverty and hunger.

Bangko Sentral ng Pilipinas (BSP) data showed 74 percent of households, or 20.1 million individuals, had no savings in the fourth quarter, up from previous periods.

This financial insecurity leaves families with no buffer against economic shocks, increasing reliance on inadequate incomes and contributing to hunger.

Claims of economic gains and a robust job market in the face of the worsening poverty and hunger figures suggest growth is not inclusive.

The persistence of low-quality jobs and underemployment limited income growth, keeping poverty and hunger high despite the glowing GDP numbers.

An economist said the low of 38 percent self-rated poverty in March 2019 was achieved through economic growth and targeted poverty alleviation programs.

The infusion of more funds strengthened the central Pantawid Pamilyang Pilipino Program (4P).

The 4P concept was based on criteria that should be met to become a beneficiary instead of the current practice of mostly politicians instead of the Department of Social Welfare and Development doling out assistance.

Thus, the benefits are not reaching the intended poor. Growth may be concentrated in sectors that exclude low-income rural or informal workers, prevalent in places like the Visayas and Mindanao.

The figures showed that growth favored higher-income groups or urban centers as reflected in Metro Manila’s lower 41-percent self-rated poverty, leaving rural areas like the Visayas, with 62-percent self-rated poverty, behind.

Hypocrisy and insensitivity, which afflicted a not-so-distant prior regime, have made a vicious comeback.