A stronger and more resilient middle class is critical to sustainably reducing poverty and achieving inclusive economic growth in the Philippines, according to the Department of Economy, Planning, and Development (DEPDev).

Speaking at the launch of the World Bank’s Poverty and Equity Assessment (PEA) report, “Building the Filipino Middle Class: Towards Resilient Futures and Poverty Eradication,” last Friday, June 5, DEPDev Secretary Arsenio M. Balisacan said the findings underscore the need to strengthen the country’s middle-income segment while addressing persistent vulnerabilities faced by many 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.

The country’s chief economist noted that poverty incidence declined to 15.5 percent in 2023 from 18.1 percent in 2021, although many households remain vulnerable to shocks such as 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,” the DEPDev chief said.

“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 support the growth of the middle class, Balisacan outlined four priority areas under the Philippine Development Plan (PDP) 2023-2028, which serves as the medium-term socioeconomic blueprint of the Marcos Jr. administration: creating high-quality and productive jobs, improving the delivery of public services and regional development, strengthening resilience against emerging risks, as well as enhancing economic governance.

The DEPDev chief said the government must continue promoting competition, innovation, investment, as well as labor market reforms to sustain inclusive growth while ensuring workers remain protected and adaptable to changing economic conditions.

Balisacan also emphasized the need to address disparities in health, education, and nutrition outcomes, particularly in remote and underserved communities, through stronger local institutions, improved fiscal transfers, as well as better implementation capacity.

Also, Balisacan stressed the importance of strengthening the country’s ability to withstand climate-related events, health emergencies, as well as economic shocks through a more responsive and forward-looking social protection system.

“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, maginhawa, at panatag na buhay for every Filipino,” he said.