Philippines poverty reduction and economic policy

The Philippines reported a record low poverty incidence of 9.7 percent in 2025, marking the first time the rate has reached single digits. According to the Philippine Statistics Authority, this decline lifted approximately 6.5 million Filipinos out of poverty compared to 2023 levels. Economic Planning Secretary Arsenio Balisacan noted that this achievement puts the government three years ahead of its development plan targets, driven by nominal income increases of approximately 22 percent between 2023 and 2025.

In response to these developments, the Marcos administration announced plans to strengthen support for the middle class and protect those recently lifted from poverty. Executive Secretary Ralph Recto stated the government aims to prevent individuals from sliding back into poverty by focusing on job creation, income growth, and reducing living costs.

To mitigate risks from climate disruptions and international crises, the administration is pursuing legislative measures and infrastructure projects. Proposed actions include raising the annual personal income tax exemption to P350,000, granting a general tax amnesty, and abolishing the travel tax. The government is also working to prevent electric utilities from passing system-loss charges to consumers.