Philippine poverty falls to record low, but many still feel insecure

The Philippines has officially cut its poverty rate to under 10 percent for the first time, signaling that millions of people are moving up the economic ladder. However, the reality for many families remains challenging. Vhan Castro, a 34-year-old with a family of four, earns around 40,000 pesos (US$650) monthly from various side hustles.

Despite being officially classified as middle class, his family faces financial insecurity due to rising costs of living and fuel prices. His wife, a nurse in Saudi Arabia, is on unpaid leave to care for their newborn. The couple has managed to save some money but worries about healthcare costs and other expenses. Castro expressed concern about the sustainability of their gains, hinting at the possibility of emigrating.

The poverty rate fell from 15.5 percent in 2023 to 9.7 percent in 2025, affecting about 11 million Filipinos. While the official poverty threshold stands at 14,634 pesos (US$237), experts argue that true economic security goes beyond meeting basic needs. Arsenio Balisacan, the country's chief economist, noted that while nominal incomes grew by 22 percent between 2023 and 2025, poverty reduction may slow as the economic environment becomes more challenging in 2026.

The World Bank's report highlights that nearly 28 percent of the population remains vulnerable to falling back into poverty, emphasizing the need for structural reforms and long-term solutions to ensure sustained progress.