18/09/2025
CENTRAL Visayas remains one of the country’s fastest-growing regions, but officials warn that slowing foreign trade and falling investments could temper its momentum.
At the 2025 Philippine Economic Briefing in Cebu City on Thursday, Sept. 18, Department of Finance Secretary Ralph Recto and Department of Economy, Planning and Development (DEPDev) Undersecretary Carlos Bernardo Abad Santos said the region is “outpacing national averages” in growth, employment, and poverty reduction.
Growth and inclusive development
Recto reported that Central Visayas, led by Cebu Province, grew by 7.3 percent in 2023 and 2024 — the fastest among all 17 regions — with significant influence on the national economy. The growth figures included Negros Oriental and Siquijor, which were part of the region until June 13, 2024. On that date, President Ferdinand Marcos Jr. signed Republic Act (RA) 12000, reestablishing the Negros Island Region (NIR), comprised of Negros Oriental, Negros Occidental and Siquijor.
The finance chief called for translating this growth into tangible benefits.
“The numbers are promising, but people must feel it on the ground—better jobs, better wages, and better services,” he said.
Recto described Cebu as the “front and center” of the country’s growth story, saying it “has outgrown its role as a regional hub. It now stands as a national powerhouse that competes, creates, and connects the entire Philippines to the world.”
Economic drivers
Officials identified tourism, infrastructure and digitalization as the region’s main growth engines. Cebu accounts for 15 percent of the nation’s full-time IT-BPM workforce and serves as a strategic logistics hub, handling over 80 percent of the country’s shipping capacity.
Key developments include:
- AI tech academy: The Philippine Economic Zone Authority’s first, aimed at transforming 45 ecozones into advanced manufacturing and artificial intelligence hubs.
- Shipbuilding milestone: Home to the world’s first methanol-powered bulk carrier, built by Japanese shipbuilder Tsuneishi in Balamban, Cebu.
- Infrastructure upgrades: Cebu Bus Rapid Transit, Cebu International Container Port, Bohol-Panglao International Airport upgrade, and the planned Cebu-Mactan fourth bridge and coastal road to cut travel time to the airport.
By the numbers
Santos, for his part, laid out a snapshot of Central Visayas’ economic pulse, revealing a mix of progress and pressure points. Inflation remains within target, job quality is improving, and poverty has dropped significantly — yet foreign investments and trade are showing signs of strain.
The tourism sector is rebounding domestically, though international arrivals remain uneven.
Here's a breakdown of the region’s key indicators:
- Inflation: three percent in August, within target.
- Underemployment: Down to 6.5 percent, signaling better job quality.
- Unemployment: 6.1 percent.
- Poverty: Fell from 27.6 percent in 2021 to 17.3 percent in 2023; target is single digits by 2028.
- Investments: Foreign investments down 14.5 percent in the first half of 2025; local investments up 20.4 percent.
- Trade: Foreign trade down 10.7 percent due to weaker exports and imports. Japan remains top export market (shipbuilding products); China leads imports (semiconductor materials).
- Tourism: Domestic tourism at 98 percent of pre-pandemic levels; international arrivals unstable, with South Korean visitors down 30 percent in the second quarter (April-June).
Risks and outlook
Santos cited global uncertainties, agricultural shortfalls, and U.S. policy shifts as key risks. He said reforms in water security, green energy and social protection will continue, supported by the community-based monitoring system to ensure aid reaches “the right families at the right time.”
DEPDev projects inflation to stay within the two to four percent target, with exports possibly rebounding in fourth quarter (October-December) due to seasonal demand and new trade pacts such as the Comprehensive and Progressive Agreement for Trans‑Pacific Partnership (CPTPP).
“Great work, Region 7. But our work is far from complete,” Santos said. “Central Visayas is firmly on the path to sustainable and inclusive development, propelled by an empowering and technology-driven economy with transparency and accountability.” (EHP)
CENTRAL Visayas remains one of the country’s fastest-growing regions, but officials warn that slowing foreign trade and falling investments could temper its mom