MANILA, Philippines — Fewer Filipinos were living in poverty in 2025 as household incomes grew faster than the cost of basic needs, according to the Philippine Statistics Authority.

The PSA said 11.08 million Filipinos, or 9.7 % of the population, were classified as poor in 2025. This was down from 17.54 million, or 15.5 percent, in 2023.

Among families, poverty incidence fell to 6.4 percent, equivalent to about 1.9 million families, from 2.99 million in 2023. It was the first time the country’s family poverty rate dropped below 10 %.

A person is considered poor if their income falls below the poverty threshold needed to meet basic food and non-food needs.

For a family of five, the average monthly poverty threshold increased from P13,873 in 2023 to P14,634 in 2025.

The PSA attributed the decline in poverty mainly to income growth outpacing the increase in the poverty threshold. Mean annual per capita income rose 22 % from 2023 to 2025, while the poverty threshold increased by 5.5 %.

The median per capita income also increased from P85,291 in 2023 to P104,072 in 2025.

Department of Economy, Planning and Development Secretary Arsenio Balisacan welcomed the decline but said the government must ensure families who have moved out of poverty do not fall back into it.

He also warned that poverty reduction could slow in 2026 as the country faces a more challenging economic environment.

‍