Last week, the Philippine government’s vision of becoming an upper-middle-income country (UMIC) by 2025 — an ambitious yet inspiring goal — ran into headwinds. The latest Social Weather Stations (SWS) survey reveals a sobering reality: 63 percent of Filipino families rated themselves as poor in the fourth quarter of 2024, the highest self-rated poverty level in 21 years. This does not square with a reiteration by the National Economic and Development Authority (NEDA) in its year-end 2024 briefing that the country stands “a good chance of attaining an upper middle-income country (UMIC) status in 2025.” The World Bank defines UMIC economies as those with GNI per capita ranging between $4,516 and $14,005 for the fiscal year 2025.
The disconnect between national economic aspirations and household realities lies in the uneven distribution of growth. While the economy has rebounded from pandemic-induced setbacks, many Filipinos remain trapped in cycles of poverty due to unemployment, underemployment, inflation, and inequitable access to education, healthcare, and social protection. The rising cost of living has further eroded purchasing power, leaving many families feeling left behind despite national progress.
Moreover, self-rated poverty captures not just material deprivation but also perceptions of inequality and insecurity. When families see others thriving while their own circumstances stagnate, the resulting disillusionment reflects a deeper challenge for policymakers: bridging economic growth with social equity.
Economic growth must directly benefit the poor. Investments in agriculture, rural development, and small and medium enterprises (SMEs) are critical to generating inclusive opportunities. The agriculture sector, which employs a large portion of the workforce, must transition to high-value crops, adopt climate-resilient practices, and provide farmers with access to credit and markets.
In addition, industrial policies should promote job creation in labor-intensive sectors, ensuring that economic gains are distributed across all regions. Urban-centric growth must give way to balanced regional development, reducing rural poverty and minimizing migration pressures on urban areas.
Next, conditional cash transfers, health subsidies, and food assistance programs must be scaled up and made more efficient. Programs like the Pantawid Pamilyang Pilipino Program (4Ps) should focus not just on poverty alleviation but also on building long-term resilience. Social safety nets must also extend to informal workers, who represent a large segment of the economy and are most vulnerable to economic shocks.
Rising food and energy prices disproportionately affect the poor. The government must ensure food security by addressing supply chain inefficiencies, lowering production costs, and promoting domestic agricultural production. Targeted subsidies for essential goods and services can alleviate immediate burdens while systemic reforms stabilize prices.
Education and health are foundational to breaking the cycle of poverty. Equitable access to quality education, including technical-vocational training, equips individuals with the skills to secure better-paying jobs. Universal healthcare coverage ensures that families do not fall into poverty due to medical expenses.
Achieving UMIC status in 2025 is a worthy aspiration, but it must be accompanied by concrete efforts to reduce poverty and inequality. The government must ensure that economic gains do not widen the gap between the rich and the poor but instead uplift all Filipinos. In the end, the true measure of national progress lies not in statistical thresholds but in the lived realities of ordinary citizens. A Philippines where every family feels the benefits of growth—where aspirations are matched by opportunities—is not just a vision but an imperative. The challenge is formidable, but with strategic action, it is achievable.