PSA: Poverty rate in Cebu, tri-cities declines

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CEBU Province has seen a significant reduction in its poverty rate, according to 2023 data from the Philippine Statistics Authority (PSA). This decline also includes the highly urbanized cities of Cebu City, Mandaue, and Lapu-Lapu.

The province’s poverty incidence fell to 16.9 percent in 2023, a substantial drop from 28.6 percent in 2021. This translates to approximately 897,930 individuals now classified as poor, a marked decrease from 1.47 million in 2021.

Cebu City saw a sharp decline in its poverty population, from 136,530 individuals in 2021 to 75,450 in 2023, though it is still higher than the 64,030 poor residents recorded in 2018.

Similarly, Lapu-Lapu City reduced its poverty count from 69,860 to 42,130, while Mandaue City reported a decrease from 59,680 to 29,090.

During a press conference on December 17, PSA Cebu Chief Statistical Specialist Melchor Bautista emphasized the marked improvement in poverty reduction across the province.

Alongside the poverty reduction, the poverty threshold, which is the minimum monthly income required for a family of five to cover essential needs such as food, shelter, education, and healthcare, has seen a steady increase.

In 2023, the poverty threshold for Cebu and its HUCs rose to P14,835, compared to P14,024 in 2021 and P10,798 in 2018. This increase reflects rising living costs in the region.

Despite the drop in poverty rates, the number of poor families in Cebu has reduced to 157,460 in 2023, from 292,590 in 2021.

The proportion of poor families decreased to 11.7 percent, compared to 22.8 percent two years ago. However, this figure is still above the 11.3 percent recorded in 2018.

Economist Fernando Fajardo voiced concerns about the slow economic recovery in Cebu, pointing out that the region’s poverty rate remains higher than the national average of 10.9 percent.

Despite the improvement in poverty incidence, Fajardo believes Cebu has yet to recover fully from the impacts of the Covid-19 pandemic.

He emphasized the importance of government action to address the root causes of poverty, particularly the lack of opportunities for families to earn sufficient incomes.

PSA Central Visayas Chief Statistical Specialist Leopoldo Alfanta acknowledged that the current methodology used for calculating the poverty threshold is outdated, relying on 2003 food pricing data.

He added that the technical committee has not yet developed a new methodology, but expects it to be in place by 2025.

According to Alfanta, updating the methodology will ensure more accurate data and contribute to more effective poverty reduction policies.(MyTVCebu)