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15.5% of Filipinos Lived in Poverty in 2023: PSA Report

MANILA — Poverty in the Philippines affected approximately 17.54 million people in 2023, according to a report released by the Philippine Statistics Authority (PSA) on Monday. This translates to a poverty incidence rate of 15.5% for the year, highlighting the country’s ongoing struggle with economic inequality.

The PSA highlighted that the poverty situation in the Philippines has returned to its pre-pandemic levels. In December, the PSA reported that two in ten Filipinos, or 22%, were living in poverty during the first half of 2023. Additionally, 4.84 million Filipinos did not earn enough to afford basic food necessities from January to June 2023, down from 9.79 million in the same period.

National Statistician Undersecretary Claire Dennis Mapa explained the decline in poverty incidence from 2021 to 2023. The poverty threshold, influenced by the rising prices of food items, increased by 15.3% in 2023. Meanwhile, the mean per capita income of families near the poverty threshold (the second decile) rose by 22.9%, surpassing the increase in the poverty threshold.

The National Economic and Development Authority (NEDA) acknowledged that the 2023 poverty figures slightly exceed the government’s development target, which aimed for a poverty incidence of 16.0-16.4% as outlined in the Philippine Development Plan 2023-2028. Socioeconomic Planning Secretary Arsenio Balisacan noted that high inflation during the first half of 2023 partially offset the positive effects of income growth on poverty reduction.

“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,” Balisacan stated.

Balisacan emphasized the government’s ongoing commitment to ensuring food availability, accessibility, and affordability for Filipinos. He outlined several strategies to address poverty in the Philippines, including boosting agricultural productivity, investing in infrastructure and markets, managing food prices through supply- and demand-side interventions, and strengthening targeted health interventions.

Food inflation reached 6.5% in June, while overall inflation slowed to 3.7%. Balisacan also highlighted the need to create more and higher-quality jobs to support Filipinos. The government aims to strengthen social safety nets using digital technologies to shield the poor and vulnerable from economic shocks.

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