Poverty incidence in Philippines declines to 21.6 pct in 2015

Poverty incidence in the Philippines declined to 21.6 percent in 2015 from 25.2 percent in 2012 and 26.3 percent in 2009, according to figures released by the government on Thursday.

The figures indicated that there are about 1.4 million less poor Filipinos in 2015 than in 2009.

Rosemarie Edillon, deputy director general of the National Economic and Development Authority, said the dip in poverty incidence last year was due to a generally low and stable inflation, improved incomes, and higher employment rates in the period.

"Even so, the rate of poverty reduction between 2012 and 2015 could have been faster, if not for the major shocks, especially the intermittent typhoons and El Nino that adversely affected agricultural production, rural incomes, and food prices," she said.

She said that the decline in poverty has been more pronounced in recent years, and that the data showed there are about 1.4 million less poor Filipinos in 2015 than in 2009.

Among families, Edillon said poverty incidence was also at a record low of 16.5 percent in 2015, than the 19.7 percent recorded in 2012 and 21.0 percent recorded in 2006.

Edillon also said that the subsistence incidence, which measures extreme poverty, was reduced by more than half as of 2015, attaining the target of halving extreme poverty under the first Millennium Development Goals.

"This signifies improvements in the quality of living conditions, which may indicate that the government's programs and projects, such as the Conditional Cash Transfer Program, have been gaining traction," she said.

She added "The magnitude or the extent of the reduction in poverty incidence also improved in the period between 2012 and 2015 by 3.6 percentage points, compared to 1.1 percentage points in the period between 2009 and 2012. This faster decline in poverty is definitely supported by the significant improvements in incomes, particularly among lower income groups."

Edillon said the decrease in poverty incidence was observed in all regions. Still, she said there is a lot of work ahead, particularly in reducing inequality across regions and sectors.

"We need to pay greater attention to the lagging regions particularly in Mindanao, as well as to the agriculture sector where many of the poor are found," she said.

Edillon noted that the underemployment rate "still tends to be steep among regions with high poverty incidence."

"This signals the low earning capacity of the poor and their limited access to regular and productive jobs, otherwise known as in-work poverty. The working arrangements are typically informal, temporary or casual, and low-paid, which cause them to desire additional work," she said.

The figures showed that the Autonomous Region in Muslim Mindanao in the southern Philippines and Eastern Visayas in the central Philippines posted the highest poverty incidence rates.

"These are the regions that are most vulnerable to natural and man-made shocks, mostly arising from armed conflict," Edillon said.

To sustain efforts to reduce poverty, Edillon stressed the need to improve the country's employment rate and further improve the country's business climate to create more jobs. Specifically, she stressed the need to maintain rapid economic growth that increased incomes of the poorest sector, saying this is crucial in stamping out poverty.

"Easing restrictions on foreign investments will also help boost job generation," she said.

She voiced optimism that the Philippines' goal to eradicate poverty "is very possible and highly achievable," targeting to reduce poverty rate to between 13 and 15 percent by 2022. Endit