A resilient and expanding middle class is critical to sustaining poverty reduction and achieving inclusive economic growth, the Department of Economy, Planning, and Development (DEPDev) said, citing key findings from the World Bank’s Poverty and Equity Assessment (PEA) Report on the Philippines launched on June 4.
Speaking at the launch of the report, “Building the Filipino Middle Class: Towards Resilient Futures and Poverty Eradication,” DEPDev Secretary Arsenio M. Balisacan welcomed the study as a timely and valuable contribution to the government’s efforts to strengthen evidence-based policymaking and deepen understanding of the opportunities and challenges facing Filipino households.
“This report comes at a critical juncture in the Philippines’ development journey—one marked by meaningful progress in poverty reduction, yet also by persistent vulnerabilities and structural constraints that continue to shape the pace and inclusiveness of growth,” Balisacan said.
The DEPDev chief noted that poverty incidence declined from 18.1 percent in 2021 to 15.5 percent in 2023, reflecting the country’s continuing progress in improving living standards. However, he emphasized that many Filipino households remain vulnerable to economic and social shocks, including food price volatility, health emergencies, climate-related disasters, and labor market disruptions.
“While we remain focused on our efforts to reduce poverty, we acknowledge that recent economic disruptions continue to challenge our economy. The government is carefully calibrating its strategies to ensure that we meet our development objectives,” he said.
Balisacan underscored that strengthening the Filipino middle class is essential to achieving long-term development goals.
“Building a resilient middle class is more than a social aspiration—it is a socioeconomic imperative. A strong middle class drives domestic demand, broadens the tax base, supports investments in human capital, and strengthens social cohesion and institutional stability,” he said.
To advance this goal, Balisacan highlighted four key policy priorities aligned with the Philippine Development Plan (PDP) 2023–2028:
- Creating high-quality and productive jobs;
- Strengthening service delivery and accelerating spatial convergence;
- Building resilience against emerging and evolving risks; and
- Enhancing economic governance.
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He emphasized the need to sustain inclusive growth by promoting competition and business dynamism, strengthening innovation and investment, and fostering labor market institutions that balance worker protection with flexibility and adaptability.
Balisacan also stressed the importance of addressing persistent disparities in health, education, and nutrition outcomes, particularly in geographically isolated and disadvantaged areas. He noted that stronger local institutions, more effective fiscal transfers, and improved implementation capacity are critical to ensuring equitable access to essential services.
In addition, he reiterated the need to strengthen resilience against climate-related events, health shocks, and economic disruptions through a more agile, responsive, and forward-looking social protection system.
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“Building a predominantly middle-class Filipino society is about creating the conditions for economic security, dignity, and opportunity,” Balisacan said. “By advancing reforms that promote quality jobs, effective institutions, and responsive public services, we can move closer to our vision of a matatag, maginhawa, at panatag na buhay for every Filipino.”
The World Bank’s PEA report reinforces the importance of sustained reforms and targeted investments to expand economic opportunities, reduce vulnerability, and accelerate the country’s progress toward poverty eradication and inclusive development.
