Single digit PH poverty rate possible

The Department of Finance (DOF) said the country may attain a single-digit poverty rate sooner than the target set by the Marcos administration.

Finance Secretary Ralph G. Recto said the country might reach a poverty rate of 9.3 percent by 2026, two years earlier than the government’s 2028 target.

Recto said the better-than-expected outlook was due to improvements in the labor market and manageable inflation.

“The World Bank study estimated that the country could cut its poverty incidence to 9.3 percent in 2026, two years ahead of the 2028 target with the continuous improvement in the labor market and the easing of the inflation rate,” he said.

The original goal of the government was to reduce poverty incidence to a single-digit level of nine percent by 2028, which would mean lifting around 14 million people out of poverty.

Data from the Philippine Statistics Authority showed that the country’s poverty rate stood at 22.4 percent in the first half of 2023.

Recto, meanwhile, noted positive developments in the Philippines’ job market and the quality of work for Filipinos, citing data from the February 2024 Labor Force Survey (LFS).

The unemployment rate in February declined to 3.5 percent from 4.8 percent a year earlier, with only 1.8 million people unemployed, the second-lowest rate ever recorded.

“I am optimistic that through this continued progress in our labor market, which leads to increased opportunities and incomes for more Filipinos, we will be able to reach our single-digit poverty goal sooner than expected,” Recto said.

He also added the DOF is committed to implement additional strategies that will not only strengthen the labor market and enhance working conditions but also ensure effective control of inflation.

“All of our development efforts are directed towards harnessing the talents of our young workforce and building an economy where every Filipino can thrive, secure decent jobs, and create better lives for themselves and their families,” Recto said.

“All these provide pathways out of poverty and lay the groundwork for a more inclusive and prosperous future for our people.”