Poverty incidence among Filipinos registered at 25.8%, as of first semester of 2014 - PSA

Reference No.: 20150306-SS2-01
Release Date: 06 March 2015
The Philippine Statistics Authority (PSA) releases its latest report today on the country’s official poverty statistics for the first semester of 2014.  The PSA report provides the estimates of poverty incidence using income data from the Annual Poverty Indicators Survey (APIS)1.
 
Poverty incidence among Filipinos2 in the first semester of 2014 was estimated at 25.8 percent3 based on the 2014 APIS conducted in July 2014.  During the same period in 20134, poverty incidence among Filipinos was recorded at 24.6 percent5.
 

Figure 1. Poverty Incidence among Population: 
First Semester 2013 and 2014

Source: Philippine Statistics Authority

 
 
On the other hand, subsistence incidence among Filipinos, or the proportion of Filipinos whose incomes fall below the food threshold, was estimated at 10.5 percent6 in the first semester of 2014. This is at the same level of subsistence incidence among Filipinos (10.5 percent) in the first half of 2013.  Subsistence incidence among Filipinos is often referred to as the proportion of Filipinos in extreme or subsistence poverty.
 

Figure 2. Subsistence Incidence among Population: 
First Semester 2013 and 2014

 

 

 

 

Source: Philippine Statistics Authority

 

 

Food and Poverty Thresholds
 
Food threshold is the minimum income required to meet basic food needs and satisfy the nutritional requirements set by the Food and Nutrition Research Institute (FNRI) to ensure that one remains economically and socially productive.  It is used to measure extreme or subsistence poverty.  Poverty threshold is a similar concept, expanded to include basic non-food needs such as clothing, housing, transportation, health, and education expenses.
 
During the first semester of 2014, a family of five needed at least PhP6,125 on the average every month to meet the family’s basic food needs and at least PhP8,778 on the average every month to meet both basic food and non-food needs. These amounts represent the monthly food threshold and monthly poverty threshold, respectively.  They indicate increases of about 9.5 percent in food threshold and 9.4 percent in poverty threshold from the first semester of 2013 to the first semester of 2014 7.
 
Poverty among Filipino families
 
PSA also releases statistics on poverty among families – a crucial social indicator that guides policy makers in their efforts to alleviate poverty.
The poverty incidence among Filipino families based on the 2014 APIS was estimated at 20.0 percent8 during the first semester of 2014.  In the first semester of 2013, the poverty incidence among Filipino families was estimated at 18.8 percent9.
 
 

Figure 3. Poverty Incidence among Families: 
First Semester 2013 and 2014

 

Source: Philippine Statistics Authority

 
The subsistence incidence among Filipino families, or the proportion of Filipino families in extreme poverty, was estimated at 7.6 percent10 during the first semester of 2014.  In the same period in 2013, the proportion of families in extreme poverty was recorded at 7.5 percent.

 

 

Figure 4. Subsistence Incidence among Families: 
First Semester 2013 and 2014

 

Source: Philippine Statistics Authority

 
Income Gap, Poverty Gap and Severity of Poverty
 
In addition to the thresholds and incidences, the PSA also releases other poverty-related statistics in the report such as the income gap, poverty gap and severity of poverty. The income gap measures the average income required by the poor in order to get out of poverty, expressed relative to the poverty threshold.  The poverty gap refers to the income shortfall (expressed in proportion to the poverty threshold) of families with income below the poverty threshold, divided by the total number of families.  The severity of poverty is the total of the squared income shortfall (expressed in proportion to the poverty threshold) of families with income below the poverty threshold, divided by the total number of families.  This is a poverty measure that is sensitive to income distribution among the poor.
 
In the first semester of 2014, on the average, incomes of poor families were short by 27.0 percent of the poverty threshold. This means that on the average, an additional monthly income of Php2,370 is needed by a poor family with five members in order to move out of poverty in the first semester of 2014.
 
 
Table 1. Income Gap, Poverty Gap and Severity of Poverty:
First Semester 2013 and 2014
 
Statistics  Estimate
1st sem 2013 1st sem 2014
Income Gap 27.0 27.0
Poverty Gap  5.1 5.4
Severity of Poverty 2.0 2.1
 
Source: Philippine Statistics Authority
 
 
On the release of the First Semester Poverty Statistics based on the APIS
 
Official poverty statistics released by the former National Statistical Coordination Board11 (NSCB) has always been based on the income data generated in the Family Income and Expenditure Survey (FIES), which is conducted in two visits by the former National Statistics Office11 (NSO), every three years.  However, recognizing the clamor for more frequent release of official poverty statistics, the PSA, through the recommendation of the National Economic Development Authority (NEDA) Director General Arsenio M. Balisacan, used the APIS as a tool for collecting income information similar to the FIES.
 
The APIS, which is conducted in July in between FIES years by the former NSO, is a nationwide survey originally designed to provide non-income indicators related to poverty at the national and regional levels. The APIS is a rider to the July Labor Force Survey; hence, it has the same reference period with the first visit of the FIES covering January to June of the year.
In 2013, the APIS started to use more detailed questions on income by adopting the income module of the FIES, with some modifications in the section containing the list of wage and salary workers in the family.
 
To allow the generation of first semester poverty estimates at the national level, the 2013 APIS and 2014 APIS covered one replicate12 of the Master Sample or approximately one-fourth of the sample households of the FIES (10,864 and 10,469 responding households in the 2013 and 2014 APIS, respectively).  Hence, the 2013 and 2014 first semester poverty estimates released by the PSA using the APIS are available at the national level only.
 
 
 
ROMEO S. RECIDE
(Interim Deputy National Statistician)
Officer-in-Charge
 
 
 
1 The 2014 APIS does not include sample households for Batanes and Leyte.  Hence, 2013 poverty statistics presented in this Press Release are different from the 2013 first semester poverty estimates released on 29 April 2014 for consistency with the 2014 first semester poverty estimates.
2 Poverty incidence among Filipinos is the proportion of people below the poverty line to the total population.
3 At 90% level of confidence, the true estimate of the poverty incidence among Filipinos lies between 24.1 and 27.4.
4 The 2013 first semester poverty estimates were revised from those released on 29 April 2014 for consistency with the 2014 first semester poverty estimates generated from the 2014 Annual Poverty Indicator Survey which does not include sample households from Batanes and Leyte.
5 At 90% level of confidence, the true estimate of the poverty incidence among Filipinos lies between 23.0 and 26.2.
6 At 90% level of confidence, the true estimate of the subsistence incidence among Filipinos lies between 9.4 and 11.6.
7 Consumer Price Index (CPI) for Food increased by 6.49% between first semesters of 2013 and 2014.
8 At 90% level of confidence, the true estimate of the poverty incidence among families lies between 18.6 and 21.3.
9 At 90% level of confidence, the true estimate of the subsistence incidence among families lies between 17.5 and 20.2
10 At 90% level of confidence, the true estimate of the subsistence incidence among families lies between 6.7 and 8.4.
11 Now part of the Philippine Statistics Authority (PSA)
12 The Master Sample (MS) refers to a sample from which subsamples can be selected to serve the needs of more than one survey or survey rounds.  The full MS has been designed as a combination of four replicates, with each replicate being a national sample design.  Smaller surveys can thus be confined to one, two or three of the replicate samples as desired. – The Development of the 2003 Master Sample for Philippine Households by M. Barcenas
 
 

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