The Philippine Statistics Authority (PSA) reported an improvement in the country's poverty incidence last year, in line with the government's goal of reducing it to single digits by 2028.

Based on the preliminary findings of the 2023 Family Income and Expenditure Survey (FIES), the poverty incidence among Filipino households fell to 10.9 percent, equivalent to three million poor families. This marked a notable drop from 13.2 percent in 2022.

Poverty incidence is defined as the percentage of Filipino families whose incomes are inadequate to cover their basic food and non-food needs based on the poverty threshold.

On an individual level, approximately 15.5 percent of Filipinos, totaling about 17.54 million people, were classified as poor in 2023.

According to the PSA, this figure exceeded the government’s development target for poverty reduction in 2023, which was set at 16.0 percent to 16.4 percent.

It also showed a significant improvement compared to the baseline year 2021, where the poverty rate stood at 18.1 percent, according to the Philippine Development Plan 2023-2028.

Over two years, there has been a decrease of 2.45 million Filipinos living in poverty.

Moreover, 2.7 percent of Filipino families, equivalent to 740,000 households, struggled to afford basic food requirements in 2023. However, this improved from the 1.04 million food-poor families recorded in 2021, or a decline of 300,000 families facing food insecurity.

In terms of the population, 4.3 percent of Filipinos, or 4.84 million individuals, could not afford basic food requirements in 2023. This marked a 26 percent reduction from the 6.55 million food-poor individuals recorded in 2021.

“Based on these preliminary poverty statistics, the poverty situation in the country has returned to its pre-pandemic level,” the PSA said.

The PSA also explained that the reductions in poverty incidence were due to the higher income received by nearly poor families compared to the increase in poverty threshold.

The mean per capita income, or the average income earned per person in a specified year, for those in the first, second, and third decile classes recorded increases at 25.3 percent, 22.9 percent, and 22.2 percent, respectively.

Even with a slower growth compared to the mean per capita, the poverty threshold rate of 15.3 percent was still significant as it meant that the minimum income deemed adequate was raised from P28,871 in 2021 to P33,296 in 2023.

National Economic and Development Authority (NEDA) Secretary Arsenio M. Balisacan said the high inflation during the first half of 2023 “likely partially offset the positive effects of income growth on poverty reduction.”

“The decline in poverty could have been sharper had inflation been more moderate. But what is perhaps most encouraging to see is that mean per capita incomes for the poorest Filipinos—those belonging to the bottom deciles—grew quite fast, faster than those in the top decile classes and faster than the rate at which the poverty threshold grew,” Balisacan further said.

With these figures, NEDA expressed optimism that the country will be able to achieve the Marcos administration's goal of single-digit poverty incidence by 2028.

“These encouraging figures underscore our unwavering commitment to implement effective policies and initiatives that uplift the lives of our countrymen. As we welcome news of our progress, we remain steadfast in our efforts to ensure that our economic gains are truly felt by all Filipinos, rich and poor alike,” the NEDA chief said.

“With the right policies in place, and if we can accelerate our programs further, we can be confident that achieving a single-digit poverty rate by 2028 is within our reach,” Balisacan added.

“The government is resolute in its commitment to ensuring rapid, sustained, and inclusive economic growth. Despite the challenges, we will stay the course: together, we will ensure that no Filipino is left behind as we build a nation where prosperity is shared by all,” he further said.