Despite steady economic growth, millions of Filipinos continue to face deep-rooted poverty tied to living standards, education and health, according to a new report from the United Nations Development Programme (UNDP) and the Oxford Poverty and Human Development Initiative (OPHI).

The 2025 Multidimensional Poverty Index (MPI) report found that 3.9 percent of the Philippine population, or 4.47 million people, were said to be “multidimensionally poor” in 2023, while another 6.02 million are considered vulnerable.

Multiple forms of deprivation

Unlike traditional income-based measures, the MPI captures multiple forms of deprivation, including access to education, nutrition, sanitation, housing and essential utilities. In the Philippines, standards of living accounted for the largest share (42.7 percent) of deprivations, followed by education (32.7 percent) and health (24.6 percent).

The findings underscore a persistent development challenge: while the Philippines has made progress in job creation and infrastructure, many households still lack basic services and durable housing materials, rely on solid fuels for cooking, or have limited access to clean water and sanitation.

Economic context: Growth amid uneven gains

The report comes as the Philippines continues to post one of the fastest growth rates in Asia, with GDP expanding 5.9 percent in the second quarter of 2025. However, analysts have warned that high inequality and weak social protection systems could limit the benefits of this growth.

The Philippine Statistics Authority (PSA) earlier reported that poverty incidence fell to 22.4 percent in the first half of 2024, but multidimensional poverty metrics suggest that monetary progress alone fails to capture the full picture of deprivation.

“Many people living above the monetary poverty line still face significant deprivations that affect their well-being,” the UNDP report noted.

Climate hazards deepen 

poverty risks

Globally, the UNDP found that 887 million people in multidimensional poverty are also directly exposed to climate hazards — including extreme heat, floods, drought and air pollution. The Philippines, one of the world’s most climate-vulnerable countries, faces similar risks that can erode livelihoods and worsen inequality.

“Understanding where the planet is under greatest strain and where people face additional burdens created by climate challenges is essential to creating development strategies that put humanity at the center of climate action,” said Sabina Alkire, director of the Oxford Poverty and Human Development Initiative.

Experts warn that climate shocks such as typhoons, prolonged droughts and flooding could push millions of Filipinos back into poverty unless social safety nets and adaptive infrastructure are strengthened.

Middle-income nations, hidden epicenters of poverty

The report also found that middle-income countries, including the Philippines, now account for nearly two-thirds (64.5 percent) of the world’s poor. This includes nations like India, China, Nigeria and Pakistan, where rapid growth has not translated into inclusive prosperity.

UNDP said the findings, released ahead of the 2025 United Nations Climate Change Conference, or Conference of the Parties of the UN Framework on Climate Change (UNFCCC) — more commonly known as COP30 climate summit in Brazil this November — highlight how poverty and climate instability are increasingly interlinked, posing a dual challenge for policymakers and businesses alike.