Philippine poverty rate falls to historic 9.7%

The Philippines brought its poverty rate down to a historic low of 9.7 percent in 2025, with more than 6.5 million Filipinos moving above the poverty threshold over two years as household incomes grew faster than basic living costs.

The latest figures from the Philippine Statistics Authority (PSA) showed that about 11.08 million Filipinos remained poor in 2025, down from 17.5 million in 2023.

The proportion of poor families also dropped to 6.4 percent, equivalent to about 1.9 million families. It was the first time the country recorded a single-digit poverty rate among families.

The results mean the government reached its Philippine Development Plan (PDP) target of bringing poverty to single-digit levels three years ahead of schedule.

The Department of Economy, Planning and Development (DEPDev) said the decline reflects the combined impact of expanding economic opportunities and social protection programs.

DEPDev Secretary Arsenio M. Balisacan said the early achievement shows that policies aimed at expanding opportunities can produce meaningful improvements in household welfare.

The improvement came despite a 5.5-percent increase in the annual per capita poverty threshold between 2023 and 2025, largely reflecting higher prices of basic food items.

Household incomes, however, increased much faster, with mean annual per capita income rising 22 percent during the period.

Families closest to the poverty line also recorded stronger income growth. Mean annual per capita income among families in the first income decile rose 23.8 percent, while the second decile posted a 22.7-percent increase.

The PSA said poverty estimates were based on the 2025 Family Income and Expenditure Survey, which gathered income and expenditure data for the first and second halves of the year.

The figures provide a significant benchmark for the government’s efforts to sustain income growth and ensure that economic gains reach lower-income households.