An estimated 8.8 million Filipinos were lifted out of poverty in 2025 as the country’s poverty incidence fell to 9.7% from 18.1% in 2021, according to the Department of Economy, Planning, and Development (DEPDev).

Socioeconomic Planning Secretary Arsenio Balisacan attributed the decline to the recovery in household incomes and employment, as well as the government’s continuing social protection programs.

“Poverty declined substantially regardless of the poverty threshold or norm used,” Balisacan said.

“Based on the country's official poverty line and the preliminary estimates for 2025, poverty incidence, or the proportion of the population deemed poor among Filipinos, fell from 18.1% in 2021 to 9.7% in 2025,” he added.

Despite the improvement, DEPDev warned that the gains could be reduced or reversed if inflation remains elevated, particularly as higher prices disproportionately affect poor and low-income households.

The agency also called for stronger investments, exports, agriculture and industrial activity to ensure that economic growth is not driven primarily by household consumption.

DEPDev said sustaining the poverty reduction gains would require continued efforts to create jobs, raise incomes and strengthen the country’s productive sectors.