Despite cutting poverty to a record-low 9.7 per cent, high costs and climate risks leave millions of Filipino families on edge
4-MIN READ4-MIN ListenSam BeltranPublished: 5:00pm, 25 Aug 2026The Philippines has cut its official poverty rate to below 10 per cent for the first time, a milestone officials hailed as proof that millions of Filipinos are climbing the economic ladder.Yet for families like Vhan Castro’s, there is a big difference between being officially counted as middle class and actually feeling financially secure.
The 34-year-old earns an average of 40,000 pesos (US$650) a month for his family of four through a patchwork of side hustles – from renting out a van for long-haul journeys to running a vehicle repair garage.
By the official benchmarks, that income places his family in the middle class. But the lived reality – strained by the Philippines’ rising cost of living and fuel prices – is more complicated.
The couple have managed to put aside some savings, but healthcare costs and other concerns weigh heavily on them.
