In this article, we’ll explore the current state of poverty in the Philippines as of 2024. Despite ongoing challenges, the poverty rate in the Philippines has decreased to 22.4% per million people. This marks a decline from the 23.7% reported by the Federal Government’s statistics agency in the first half of 2023. With a population exceeding 110 million, the country faces significant poverty-related issues exacerbated by adverse weather events and rapid inflation. To gain a deeper understanding of poverty in the Philippines in 2024, including current statistics and more details, continue reading this article.
Poverty in the Philippines 2024
Economic growth in the Philippines has experienced a continuous cycle of boom and bust, with recent trends indicating a period of moderate economic expansion. However, this growth has been significantly affected by poverty, which spans across different income brackets, sectors, and regions. Additionally, the rising population has exacerbated the issue, as it remains unmanaged and is a key factor contributing to poverty.
Several factors have contributed to the increase in poverty levels in the Philippines. Over the past 40 years, low to moderate economic growth has limited poverty reduction efforts. Moreover, there has been a notable weakness in generating employment, which has hindered the development of high-quality jobs across various sectors.
The ongoing economic crisis, marked by rising inflation and persistent inequality based on income and assets, has been straining economic growth. Federal analysts have forecasted that the Philippines will face significant challenges in 2024. These difficulties are expected to impact the country’s Gross Domestic Product (GDP), which has been revised to a narrower growth target of 6.5% to 7.5%, down from the previous range of 6.5% to 8%.
In the Philippines, approximately 18.1% of the population lives below the national poverty line. This includes a proportion of the employed population living on less than $1.90 per day, which was 2.2% in 2022. Additionally, the mortality rate was 26 per 1,000 live births in 2021.
As we enter 2024, the focus is on new beginnings while reflecting on past challenges. Poverty in the Philippines continues to impact many, but there is a sense of hope for change. According to the latest survey from the Social Weather Stations, there has been an improvement in living conditions over the past year.
What are the Current Poverty Stats in the Philippines In 2024?
As of December 2023, the poverty rate in the Philippines stands at 22.4%. This figure is notably higher than the target of 9% set by President Ferdinand R. Marcos for 2028. According to the Federal World Bank, there has been a significant decrease in poverty rates, dropping from 17.8% in 2021 to 13.7% in 2023, with a projected further decline to 10.7% in 2024. The official poverty measurement methodology in the Philippines assesses poverty based on pretax income and evaluates household welfare to determine the current poverty statistics.
Poverty is characterized by a lack of sufficient and reliable income to meet basic personal needs, including shelter, food, clothing, and other essential requirements. It is a broad issue influenced by numerous factors, including governmental policies and ongoing conflicts. Despite the challenges posed by poverty, the Philippine economy has demonstrated a notable recovery, with a GDP growth rate of 5.9% in the third quarter of 2023, following the impacts of COVID-19.
Poverty has become a significant topic due to rising inflation, prompting reforms aimed at accelerating economic growth and addressing inflationary pressures. In response, the Philippine government has implemented targeted programs, allowances, and federal savings initiatives to support low and moderate-income households in mitigating the adverse effects of inflation. To address poverty, the federal government has introduced critical measures designed to alleviate the issue.
As of January 2024, the poverty rate in the Philippines was targeted to range between 6.5% and 7.5%, reflecting the ongoing challenges faced by the economy.
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