POVERTY among Filipino families fell to 6.4 percent in 2025 as household incomes grew significantly faster than the cost of meeting basic needs, the Philippine Statistics Authority (PSA) said on Friday.
About 1.90 million Filipino families were classified as poor last year, down sharply from 2.99 million families, or 10.9 percent, in 2023. The number comprises those whose incomes are not enough “to buy their minimum basic food and basic nonfood needs,” the PSA said.At the individual level, poverty also dropped to 9.7 percent from 15.5 percent in 2023, bringing the number of Filipinos living below the poverty threshold down to about 11.08 million from 17.54 million two years earlier.The national average poverty threshold for a family of five was P14,634 last year, the PSA said, rising from P13,873 in 2023 and P11,998 in 2021.‘Fewer than one in 10’“For the first time, fewer than one in 10 Filipinos is living below the poverty line,” Socioeconomic Planning Secretary Arsenio Balisacan said in a statement.“Reaching this milestone ahead of schedule demonstrates that expanding economic opportunities, complemented by effective social protection, can make a meaningful difference in people’s lives,” he added.Under the 2023–2029 Philippine Development Plan (PDP), the Marcos administration targeted lowering the poverty rate to 8.8-9.0 percent by 2028.The 2025 figures were based on the results of the 2025 Family Income and Expenditure Survey, which collected income and expenditure data for January to June 2025 and July to December 2025.The latest poverty statistics represent a substantial improvement from previous years. Poverty among families stood at 13.2 percent in 2021 before declining to 10.9 percent in 2023.The number of poor families declined from 3.48 million in 2021 to 2.99 million in 2023.Among individuals, poverty fell from 18.1 percent in 2021 to 15.5 percent in 2023.The PSA attributed the decline in poverty incidence mainly to changes in household income and the poverty threshold between 2023 and 2025.The annual per capita poverty threshold — mostly influenced by changes in food prices — increased by 5.5 percent while mean per capita income rose by a much faster 22 percent.The gap was bigger among families at the lower end of the income distribution.Mean annual per capita income among those in the first decile increased by 23.8 percent in 2025 from 2023 (P30,902 versus P24,955, below the poverty threshold) while income in the second decile rose 22.7 percent (P45,050 from P36,7189, above the threshold).Both rates were higher than the 5.5-percent increase in the annual per capita poverty threshold, the PSA pointed out.Income among the third income decile also increased by 22.8 percent, while the fourth through ninth deciles posted gains ranging from 22.2 percent to 22.7 percent. Even the highest income decile recorded a 21.9-percent increase (P394,994 from P324,081).The mean per capita income as of last year was P104,072, higher than 2023’s P85,291 and 2021’s P72,340.Poverty gains could slowBalisacan cautioned that poverty reduction would be challenged by the economic environment this year.“Current developments may slow the pace of poverty reduction, but early indications do not point to a reversal of the gains we have achieved,” he said.“As we enter the final years of the administration, our priority is to ensure that families who have moved out of poverty do not fall back into it,” he added.“Sustaining these gains will require a swift recovery in economic growth; continued efforts to increase investment, productivity and job creation; upskilling and reskilling for emerging sectors; and timely support for businesses and workers affected by economic and climate-related disruptions.”
