15-8-2024 (MANILA) The Philippines has witnessed a modest reduction in its poverty rate, according to the latest data released by the Philippine Statistics Authority (PSA). The figures, unveiled on Thursday, reveal that the proportion of Filipinos living below the poverty line decreased from 18.1 per cent in 2021 to 15.5 per cent in 2023.
This decline translates to approximately 17.54 million individuals still grappling with poverty, a decrease of 2.4 million compared to the previous survey conducted two years prior. The PSA defines poverty based on an individual’s inability to afford basic food and non-food necessities.
While the downward trend is encouraging, experts suggest that the impact could have been more substantial were it not for the persistent issue of food inflation. National Statistician Dennis Mapa highlighted this concern during a press conference, stating, “If food inflation had been lower, of course the reduction in poverty could be much, much bigger.”
The average inflation rate for 2023 stood at 6.0 per cent, significantly exceeding the central bank’s target range of two to four per cent. This elevated rate of inflation has effectively blunted the positive effects of economic growth and poverty reduction initiatives.
The current administration, led by President Ferdinand Marcos Jr., has set an ambitious target to further reduce the poverty incidence to nine per cent by the end of his term in 2028. Achieving this goal will require concerted efforts to address not only income inequality but also the pressing issue of food affordability.
The PSA’s findings stem from its biennial Family Income and Expenditure Survey, a comprehensive study involving over 160,000 families across the nation. This extensive data collection provides crucial insights into the country’s economic landscape and the efficacy of poverty alleviation measures.
