THE Philippine poverty rate is likely to decline next year as the country's economic prospects continue to improve, the International Workplace Group country manager said Thursday.
"We are seeing a fantastic decline in poverty. This is poverty as defined by a certain number of dollars per day. It's not the perception of people, are you worried about your next meal or being able to feed you, yourself or your family next week. That's not what I'm talking about," Lars Wittig, who is also Asia Pacific North's vice president, said during The Manila Times Forum held at Lanson Hotel.
"[I'm talking about] statistically, and that poverty is declining so dramatically, [and] is expected to hit 10.7 percent already next year," Wittig said.
The government wants to reduce poverty incidence to 16.4 percent this year and trim it to 9.0 percent by 2028.
As of the first half of 2023, the percentage of poor Filipinos dropped to 22.4 percent from 23.7 percent a year earlier, or from 26.14 million to 25.14 million.
This means that about 900,000 Filipinos rose above the poverty line, which was set at P13,797 for a family of five. The poverty line in 2021 was P12,082.
"I understand the government is saying that under their administration, it will come below 10 percent, I have no doubt that it will. The question is how far? I'm not sure," Wittig said.
"Statistically, it's very accurate. Of course, the perception of people is always different. You might still technically be above poverty level, but you could still worry, right? So I'm not talking about perception," he added.
While the numbers are improving dramatically, Wittig said most Filipinos still perceive themselves as poor.
He said the country's middle class families are increasing.
"[Back then] there was [only] poor and there was rich, [but now] it is the exact opposite," Wittig said.
Economists and government officials share their insights during The Manila Times midyear economic forum, “Inspiring optimism, stimulating growth,” at Lanson Place, Mall of Asia Complex, Pasay City on June 20, 2024. Speakers were Philippine Chamber of Commerce and Industry President Enunina 'Nina' Mangio, International Workplace Group Philippine Country Manager Lars Wittig, Investment banker and Times columnist Stephen CuUnjieng, Citi Philippines CEO Paul Favila, and Bangko Sentral ng Pilipinas Senior Assistant Governor Iluminada Sicat. PHOTO BY J. GERARD SEGUIA Economists and government officials share their insights during The Manila Times midyear economic forum, “Inspiring optimism, stimulating growth,” at Lanson Place, Mall of Asia Complex, Pasay City on June 20, 2024. Speakers were Philippine Chamber of Commerce and Industry President Enunina 'Nina' Mangio, International Workplace Group Philippine Country Manager Lars Wittig, Investment banker and Times columnist Stephen CuUnjieng, Citi Philippines CEO Paul Favila, and Bangko Sentral ng Pilipinas Senior Assistant Governor Iluminada Sicat. PHOTO BY J. GERARD SEGUIA Economists and government officials share their insights during The Manila Times midyear economic forum, “Inspiring optimism, stimulating growth,” at Lanson Place, Mall of Asia Complex, Pasay City on June 20, 2024. Speakers were Philippine Chamber of Commerce and Industry President Enunina 'Nina' Mangio, International Workplace Group Philippine Country Manager Lars Wittig, Investment banker and Times columnist Stephen CuUnjieng, Citi Philippines CEO Paul Favila, and Bangko Sentral ng Pilipinas Senior Assistant Governor Iluminada Sicat. PHOTO BY J. GERARD SEGUIA Economists and government officials share their insights during The Manila Times midyear economic forum, “Inspiring optimism, stimulating growth,” at Lanson Place, Mall of Asia Complex, Pasay City on June 20, 2024. Speakers were Philippine Chamber of Commerce and Industry President Enunina 'Nina' Mangio, International Workplace Group Philippine Country Manager Lars Wittig, Investment banker and Times columnist Stephen CuUnjieng, Citi Philippines CEO Paul Favila, and Bangko Sentral ng Pilipinas Senior Assistant Governor Iluminada Sicat. PHOTO BY J. GERARD SEGUIA Economists and government officials share their insights during The Manila Times midyear economic forum, “Inspiring optimism, stimulating growth,” at Lanson Place, Mall of Asia Complex, Pasay City on June 20, 2024. Speakers were Philippine Chamber of Commerce and Industry President Enunina 'Nina' Mangio, International Workplace Group Philippine Country Manager Lars Wittig, Investment banker and Times columnist Stephen CuUnjieng, Citi Philippines CEO Paul Favila, and Bangko Sentral ng Pilipinas Senior Assistant Governor Iluminada Sicat. PHOTO BY J. GERARD SEGUIA Economists and government officials share their insights during The Manila Times midyear economic forum, “Inspiring optimism, stimulating growth,” at Lanson Place, Mall of Asia Complex, Pasay City on June 20, 2024. Speakers were Philippine Chamber of Commerce and Industry President Enunina 'Nina' Mangio, International Workplace Group Philippine Country Manager Lars Wittig, Investment banker and Times columnist Stephen CuUnjieng, Citi Philippines CEO Paul Favila, and Bangko Sentral ng Pilipinas Senior Assistant Governor Iluminada Sicat. PHOTO BY J. GERARD SEGUIA Economists and government officials share their insights during The Manila Times midyear economic forum, “Inspiring optimism, stimulating growth,” at Lanson Place, Mall of Asia Complex, Pasay City on June 20, 2024. Speakers were Philippine Chamber of Commerce and Industry President Enunina 'Nina' Mangio, International Workplace Group Philippine Country Manager Lars Wittig, Investment banker and Times columnist Stephen CuUnjieng, Citi Philippines CEO Paul Favila, and Bangko Sentral ng Pilipinas Senior Assistant Governor Iluminada Sicat. PHOTO BY J. GERARD SEGUIA Economists and government officials share their insights during The Manila Times midyear economic forum, “Inspiring optimism, stimulating growth,” at Lanson Place, Mall of Asia Complex, Pasay City on June 20, 2024. Speakers were Philippine Chamber of Commerce and Industry President Enunina 'Nina' Mangio, International Workplace Group Philippine Country Manager Lars Wittig, Investment banker and Times columnist Stephen CuUnjieng, Citi Philippines CEO Paul Favila, and Bangko Sentral ng Pilipinas Senior Assistant Governor Iluminada Sicat. PHOTO BY J. GERARD SEGUIA Economists and government officials share their insights during The Manila Times midyear economic forum, “Inspiring optimism, stimulating growth,” at Lanson Place, Mall of Asia Complex, Pasay City on June 20, 2024. Speakers were Philippine Chamber of Commerce and Industry President Enunina 'Nina' Mangio, International Workplace Group Philippine Country Manager Lars Wittig, Investment banker and Times columnist Stephen CuUnjieng, Citi Philippines CEO Paul Favila, and Bangko Sentral ng Pilipinas Senior Assistant Governor Iluminada Sicat. PHOTO BY J. GERARD SEGUIA Economists and government officials share their insights during The Manila Times midyear economic forum, “Inspiring optimism, stimulating growth,” at Lanson Place, Mall of Asia Complex, Pasay City on June 20, 2024. Speakers were Philippine Chamber of Commerce and Industry President Enunina 'Nina' Mangio, International Workplace Group Philippine Country Manager Lars Wittig, Investment banker and Times columnist Stephen CuUnjieng, Citi Philippines CEO Paul Favila, and Bangko Sentral ng Pilipinas Senior Assistant Governor Iluminada Sicat. PHOTO BY J. GERARD SEGUIA Economists and government officials share their insights during The Manila Times midyear economic forum, “Inspiring optimism, stimulating growth,” at Lanson Place, Mall of Asia Complex, Pasay City on June 20, 2024. Speakers were Philippine Chamber of Commerce and Industry President Enunina 'Nina' Mangio, International Workplace Group Philippine Country Manager Lars Wittig, Investment banker and Times columnist Stephen CuUnjieng, Citi Philippines CEO Paul Favila, and Bangko Sentral ng Pilipinas Senior Assistant Governor Iluminada Sicat. PHOTO BY J. GERARD SEGUIA
He said the middle class grew from 40 million to 80 million in barely 10 years, and "that is significant." "That means buying power that makes the market extremely exciting," he said.
The World Bank categorizes the Philippines as a lower-middle-income economy, which comprises those with per capita gross national incomes (GNI) of $1,136 to $4,465. The country's GNI per capita is currently at $3,950.
In the Asian region, the Philippines lags behind high-income neighbors like Singapore ($67,200 GNI per capita) and Brunei ($31,410), as well as upper-middle-income economies such as Malaysia ($11,780), Thailand ($7,230) and Indonesia ($4,580).
The World Bank has adjusted the upper-middle-income band to $4,466 to $13,845 GNI per capita for 2024, up from the previous range of $4,256 to $13,205.
It expects the Philippines to achieve upper-middle-income status in the next two to three years.
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