Poverty incidence within the Philippines is unlikely to fall to the federal government’s single-digit goal by 2028, the newest World Bank report showed.
In its report “Constructing the Filipino Middle Class: Towards Resilient Futures and Poverty Eradication,” the World Bank projected the national poverty rate to drop to around 12.3% by 2028 “if the pre COVID growth-poverty relationship holds.”
Under the Midterm Update of the Philippine Development Plan 2023-2028, the federal government projects poverty incidence to say no to 8-9% by 2028.
“The report projects poverty to 2028 and it does find that it can be above the (government’s) goal,” said World Bank Senior Economist Liliana D. Sousa in a media briefing on Thursday. “As of this moment we aren’t projecting poverty in single digits by 2028.”
The poverty rate fell to fifteen.5% in 2023 from 23.5% in 2015, while income inequality reached its lowest level in 4 many years, in accordance with the World Bank.
Despite the gains, about 28% of Filipinos remain vulnerable to falling back into poverty, underscoring the fragility of recent progress.
“The standard Filipino family earns simply enough to remain above the poverty line – but not enough to feel economically secure,” it added.
Nonetheless, the World Bank said poverty incidence could fall to 2.9% by 2040, consistent with the federal government’s long-term goal, if authorities implement policies that boost growth, create jobs and strengthen resilience.
Under a business-as-usual scenario or without government intervention, nonetheless, poverty incidence would decline only to six% by 2040.
The federal government seeks to make the country a predominantly middle-class society where nobody is poor by 2040.
World Bank Division Director for the Philippines Zafer Mustafaoğlu said the country could nearly eliminate poverty by 2040 with reforms that boost productivity, job creation, equity and resilience.
“The goal is ambitious, but it surely is achievable with strong commitment to reforms. The World Bank stands able to support the federal government of the Philippines on this journey,” he added. – Justine Irish D. Tabile