Self-Rated Poverty in the Philippines Drops to 42%
Survey Reveals Significant Drop in Self-Rated Poverty
A recent survey conducted by OCTA Research shows that self-rated poverty among Filipino families has dropped to 42% in April 2025. This marks a significant improvement from previous months and reflects growing optimism among households about their financial situation.
Food Poverty Also Shows Decline
Alongside the decrease in self-rated poverty, food poverty—defined as families considering themselves food-poor—also declined to 35%. This improvement indicates that more Filipino families are able to meet their daily food needs without skipping meals or relying on aid.
Economic Indicators Support Improved Perceptions
The survey findings align with other positive economic indicators, including lower inflation rates, stable employment figures, and increased consumer spending. Analysts suggest that the easing of commodity prices and expanded government assistance programs have contributed to the improved sentiment.
Government Credits Economic Reforms
The Marcos administration welcomed the results, attributing the decline in poverty perception to its aggressive economic reforms and investment in infrastructure, agriculture, and social welfare. In a statement, the Department of Social Welfare and Development (DSWD) emphasized the effectiveness of expanded cash transfer programs.
OCTA Highlights Gradual Recovery Post-Pandemic
According to OCTA Research fellow Professor Ranjit Rye, the survey demonstrates the continuing recovery of household incomes post-pandemic. Rye noted that while the numbers are encouraging, poverty perception remains sensitive to fluctuations in prices, wages, and employment stability.
Regional Disparities Persist Despite National Gains
Despite the national improvement, OCTA reported significant regional disparities. Self-rated poverty remained highest in Mindanao at 52%, followed by the Visayas at 47%. In contrast, Metro Manila reported the lowest figure at 28%, reflecting persistent inequalities in wealth and opportunity distribution.
Rural Areas Lag Behind Urban Centers
Rural communities, particularly those dependent on agriculture, continue to face higher poverty levels compared to urban centers. Analysts point to the need for sustained investment in rural development, irrigation, and support for smallholder farmers to close the gap.
Social Workers Note Lingering Vulnerabilities
Despite the positive survey results, social workers on the ground caution that many families remain vulnerable to economic shocks such as price hikes, disasters, or job losses. They stress the importance of maintaining social safety nets and improving access to healthcare and education.
Business Sector Optimistic About Rising Consumer Confidence
The business community welcomed the decline in self-rated poverty, seeing it as a signal of rising consumer confidence. Retailers and service providers anticipate increased spending during the second half of the year, driven by election-related economic activity and remittances from overseas Filipinos.
Critics Urge Caution Against Over-Optimism
However, critics of the government warn against over-celebrating the survey results. Economist JC Punongbayan argued that the data reflects perceptions, not actual poverty measurements based on income thresholds, and that structural poverty remains entrenched in many sectors of society.
Upcoming Elections Expected to Influence Perceptions Further
With the midterm elections approaching in May 2025, observers expect that perceptions of poverty and economic well-being may fluctuate further. Historically, election periods boost local economies through increased government spending and campaign-related employment.
Impact of Inflation Control Efforts Recognized
One of the major factors contributing to improved self-rated poverty figures is the government’s aggressive stance on inflation control. The Bangko Sentral ng Pilipinas (BSP) has managed to stabilize inflation within the target range, easing pressure on household budgets.
OFW Remittances Remain a Key Support for Families
Remittances from Overseas Filipino Workers (OFWs) continue to play a vital role in supporting household incomes. The consistent inflow of remittances, combined with the strengthening peso, has provided families with additional purchasing power and financial security.
Calls for Inclusive, Sustainable Growth Intensify
Development experts emphasize that while short-term improvements are encouraging, the government must focus on ensuring inclusive and sustainable growth. Addressing job quality, underemployment, and rural poverty are seen as essential to making progress permanent and equitable.
Conclusion: Encouraging Signs, But Challenges Remain
The decline in self-rated poverty and food poverty marks a positive development for the Philippine economy and society. However, experts, advocates, and policymakers agree that these gains must be sustained and translated into structural reforms that address persistent inequalities and vulnerabilities. The road ahead requires balancing optimism with vigilance to ensure that no Filipino family is left behind in the country’s post-pandemic recovery.
