Highlights of the 2012 Full Year Official Poverty Statistics

Released Date:
Monday, December 9, 2013
I. Highlights of the 2012 Full Year Official Poverty Statistics
A. National
1. Main Indicators
 
For the full year 2012, a family of five will need around PhP 5,513 monthly income to buy their minimum basic food needs; and around PhP 7,890 monthly for their minimum basic food and nonfood needs.
This represents an increase of about 12.3 percent for both the food and poverty thresholds between 2009 and 2012.  Such increases represent inflation of about 4.1% on the average per year between 2009 and 2012.
 
In the same period in 2012, the proportion of Filipino families in extreme poverty whose incomes are not sufficient to meet basic food needs stands at 7.5 percent, which is almost the same in 2009 but the figure in 2012 is significantly lower than the 8.8 percent estimate in 2006. 
 
It is worth noting that despite the rise in the number of families in the country between 2006 and 2012, the estimated number of extremely poor families has remained steady at around 1.61 million.
 
In terms of the poverty incidence, one out of five Filipino families was estimated to be poor in 2012 (19.7 percent). The estimate for 2012 is slightly lower than the 2009 and 2006 poverty incidence figures, which were estimated at 20.5 and 21.0 percent, respectively, but these differences are not statistically significant.
 
Although the proportion of poor families has been practically similar between 2006 and 2012, on account of the country’s growing population, the estimated number of poor families has risen from 3.8 million in 2006 to 4.2 million in 2012.

 

Table 1. Full Year Thresholds, Incidences and Magnitude of Poor : 
2006, 2009 and 2012

 

2. Other Poverty Measures
 
In addition to the abovementioned indicators, other poverty measures generated by NSCB, which could also be used for designing poverty intervention programs include the income gap, poverty gap and squared poverty gap.
 
In 2012, the income gap, which measures the amount of income required by the poor in order to get out of poverty in relation to the poverty threshold itself, was estimated at 26.2%.  This means that, on the average, a poor family with five members needed a monthly additional income of about Php2,067 to move out of poverty in 2012.
 
This can serve as a useful reference especially in determining the necessary budget to eradicate poverty in the country.  Given this information, the NSCB estimates that if the government were to provide a mere cash transfer to all poor households in terms of what they would require to cross the poverty line, a total of Php124 billion in 2012 would be required to eradicate poverty (exclusive of targeting costs).  It may be noted that budget allocated for CCT for the entire year of 2012 is 39.4 billion.

 

Table 2. Income Gap, Poverty Gap and Severity of Poverty:
2006, 2009 and 2012

 

B. Regional
 
At the regional level, the regions with the lowest poverty incidence among families in 2006, 2009, and 2012, continue to be NCR, CALABARZON, and Central Luzon.  On the other hand, ARMM consistently figured in the bottom (poorest) set of regions with the highest poverty incidence among families between 40.0 to 49.0 percent in 2006, 2009, and 2012.  Note that in 2006 and 2009, Zamboanga Region and Caraga were included in the three regions with the highest poverty incidence.  While it is worth noting that they did not figure in the bottom cluster in 2012, Eastern Visayas and SOCCSKSARGEN were new entrants in the said group at around 37.0 percent.
 
While it might seem that there are no changes in poverty conditions across the country between 2009 and 2012, data shows that Caraga improved its poverty incidence significantly from 46.0 percent in 2009 to 31.9 percent in 2012. 

 

Table 3. Per Capita Poverty Threshold and Poverty Incidence among Families: 
2006, 2009 and 2012

 

C. Provincial
 
As far as provincial data is concerned, the group of provinces with the least poverty incidence among families remain practically the same namely, the 4 districts of NCR, Bataan, Benguet, Bulacan, Cavite, Laguna, Pampanga, and Rizal with the addition of Ilocos Norte in the group in 2012.
Table 4. Provinces in the Least Poor Cluster: 2006, 2009 and 2012
On the other hand, the provinces which were consistently included in the cluster with the highest poverty incidence among families in 2006, 2009, and 2012 are the following:  Eastern Samar, Lanao del Sur, Maguindanao, Masbate, Northern Samar, Sarangani and Zamboanga del Norte.  New entrants in the bottom cluster of provinces in 2012 are Camiguin, Lanao del Norte, North Cotabato and Western Samar. 
Table 5. Provinces in the Bottom Poor Cluster: 2006, 2009 and 2012

 

II. Summary
 
In general, about one out of every five Filipino families (19.7 percent) was poor in 2012. The estimate for 2012 is slightly lower than the 2006 and 2009 poverty incidence figures, which were estimated at 21.0 and 20.5 and percent, respectively, but these differences are not statistically significant.   
 
Although the proportion of poor families has been practically similar between 2006 and 2012, on account of the country’s growing population, the estimated number of poor families has risen from 3.8 million in 2006 to 4.2 million in 2012.
 
In terms of subsistence incidence, one out of every ten Filipino families (7.5) had income not enough to meet their basic food needs.  This is the same in 2009 but the figure in 2012 is significantly lower than the 8.8 percent estimate in 2006.
 
However, despite the rise in the number of families in the country between 2006 and 2012, the estimated number of extremely poor families has remained steady at around 1.6 million.
Among the regions, Caraga posted significant reduction in poverty incidence between 2009 and 2012.
 
III. On the Release of Back Estimates for 1991, 2006 and 2009
 
In addition to the poverty estimates for 2012, back estimates for 2009, 2006 as well as 1991, the benchmark year for the Millennium Development Goals, were also generated since estimates in this Report:
  • Adopt the new urban and rural classification in the Family Income and Expenditure Survey (FIES) as defined in the NSCB Resolution No. 9 Series of 2013;
  • Use 2006-Based Consumer Price Index (CPI) prices in the computation of the food or subsistence thresholds; and
  • Utilize results of the 2000 and 2010 Census of Population and Housing (CPH) for the generation of estimates of families and population in the FIES

 

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