It would take more than a decade for Filipinos to feel richer and improve into middle-class status, as the latest World Bank study states that more than half of Filipinos could become part of a secure middle class by 2040.
However, it would only happen if the country sustains reforms that boost productivity, create jobs, and strengthen social protection.
The Bank’s report, released on Friday in Ortigas, Pasig City, dubbed “Building the Filipino Middle Class: Towards Resilient Futures and Poverty Eradication,” said the Philippines has the potential to significantly reduce poverty and expand economic opportunities while keeping inequality under control through a combination of growth-oriented and equity-focused policies.
The Poverty and Equity Assessment (PEA) examined poverty trends, labor regulations, public service delivery and fiscal policies to identify measures that can help improve living standards and strengthen economic resilience.
Further, the World Bank said reforms that increase productivity and employment, coupled with targeted interventions for vulnerable sectors, would be critical in accelerating poverty reduction and expanding the middle-income population over the next 15 years.
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Department of Economy, Planning and Development (DEPDev) Secretary Arsenio Balisacan welcomed the findings, describing the report as a useful guide for evidence-based policymaking and for addressing challenges faced by Filipino households.
“This report comes at a critical juncture in the Philippines’ development journey — one marked by meaningful progress in poverty reduction, yet also by persistent vulnerabilities and structural constraints that continue to shape the pace and inclusiveness of this growth,” Balisacan said.
He noted that poverty incidence fell to 15.5 percent in 2023 from 18.1 percent in 2021, but warned that many Filipino households remain vulnerable to food price volatility, health emergencies, climate-related disasters and labor market disruptions.
“While we remain focused on our efforts to reduce poverty, we acknowledge that recent economic disruptions continue to challenge our economy. The government is carefully calibrating its strategies to ensure that we meet our development objectives,” he said.
Balisacan stressed that building a strong middle class is essential to sustaining economic growth and reducing poverty over the long term.
“Building a resilient middle class is therefore more than a social aspiration. It is a socioeconomic imperative that underpins robust domestic demand, broadens the country’s tax base, supports human capital investment, and strengthens social cohesion and institutional stability,” he said.
To achieve this, the government is focusing on four key priorities under the Philippine Development Plan 2023–2028: creating quality jobs, improving service delivery, strengthening resilience against emerging risks, and enhancing economic governance.
Balisacan emphasized the need to address persistent gaps in health, education, and nutrition, particularly in underserved areas, while improving social protection systems to help households cope with climate, health and economic shocks.
“Building a predominantly middle-class Filipino society is about creating the conditions for economic security, dignity, and opportunity. By advancing reforms that promote quality jobs, effective institutions, and responsive public services, we can move closer to our vision of a matatag (sturdy), maginhawa (worthwhile), at panatag na buhay (satisfying life) for every Filipino,” Balisacan said.