CVisayas fastest-growing regional economy in PH

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CEBU CITY — Central Visayas retained its position as the fastest-growing regional economy in the Philippines in 2024, posting a 7.3 percent growth in its gross regional domestic product (GRDP).

According to Philippine Statistics Authority Central Visayas (PSA 7), the growth, which outpaced the national average of 5.7 percent, was achieved even after the reorganization that transferred Negros Oriental and Siquijor to the newly created Negros Island Region (NIR).

Central Visayas is now composed only of Cebu and Bohol.

During the Economic Performance Report of Central Visayas held on Tuesday, April 22, PSA 7 Officer-in-Charge Wilma Perante said the region's economic output climbed to P1.28 trillion in 2024 from P1.19 trillion in 2023.

Perante explained that the GRDP measures the value of goods and services produced in a region and reflects the economy's performance from the perspective of producers.

PSA 7 Chief Statistical Specialist Leopoldo Alpanta Jr. emphasized that Central Visayas remains the "largest economy in the Visayas and Mindanao."

Services accounted for the bulk of the region's GRDP at 70.1 percent, followed by industry with 24.9 percent, and agriculture, forestry and fishing (AFF) with 5.0 percent.

In terms of growth, services expanded by 7.6 percent, industry by 6.8 percent, and AFF by 5.4 percent.

Key drivers of growth included wholesale and retail trade, and the repair of motor vehicles and motorcycles (7.7 percent), manufacturing (6.6 percent), and financial and insurance activities (7.1 percent).

Sub-industries such as accommodation and food services, human health and social work, and transportation and storage recorded strong performances at 14.6 percent, 11.9 percent, and 11.3 percent, respectively.

National Economic and Development Authority (NEDA) 7 Director Jennifer Bretaña said the region's growth exceeded expectations, noting a 37.3 percent increase in tourist arrivals, from 5.48 million in 2023 to 7.15 million in 2024, as a major factor.

She also pointed to growth in household consumption, government spending, capital formation and trade.

Bretaña said Central Visayas is well-positioned for further economic growth in 2025, provided that inflation remains within the 2 to 4 percent range, investor confidence remains strong, and external risks and tariffs are effectively managed.

Bretaña said the region's average inflation rate of 3.2 percent in 2024 fell within the Regional Development Plan (RDP) target of 2.5 to 4.5 percent.

The region, now referred to in some circles as SugBohol, surpassed its 2024 economic targets despite the administrative boundary shift.

President Ferdinand Marcos Jr. signed Republic Act 12000 in June 2024, officially forming the NIR out of Negros Oriental, Negros Occidental, and Siquijor.

Despite the separation, Central Visayas maintained its growth pace from 2023, when it posted a 7.4 percent GRDP increase.

The PSA said that over 20 national and local government agencies contributed to the 2024 GRDP data, including the Bangko Sentral ng Pilipinas, Department of Trade and Industry, and Department of Tourism.

Caraga followed Central Visayas with a 6.9 percent growth rate, while Central Luzon placed third with 6.5 percent.

The Bangsamoro Autonomous Region in Muslim Mindanao was at the bottom with 2.7 percent.

Region 6 is eighth-largest economy with P645-B output

Western Visayas maintained its economic momentum in 2024 with a GRDP of P641.76 billion, securing its place as the eighth-largest economy among the country's 18 regions.

The PSA reported on Tuesday, April 22, that the region's economy grew by 4.3 percent, a slower pace compared to 6.8 percent in 2023, according to the PSA.

If Negros Island Region (NIR) was not created with Negros Occidental and Bacolod City remaining under Western Visayas, the region would have registered a 5.04 percent growth rate, according to PSA Region 6 Officer-in-Charge Nelida Amolar.

Nonetheless, Amolar stressed that the 2024 GRDP reflected an increase of P26.5 billion from the recalibrated 2023 value of P615.29 billion — figures that now exclude the two local government units.

All major sectors of the region posted positive growth except the agriculture, forestry and fishing (AFF) sector, which saw a deeper decline of -7.6 percent from -6.22 percent in 2023.

The growth of the services sector slowed down to 7.4 percent from the 10.8 percent in 2023.

The industry sector also decelerated to 3.9 percent from 6.7 percent in the previous year.

Western Visayas continues to be a services-driven economy, with the sector contributing P426.69 billion, or 66.5 percent of the region's GRDP.

The industry sector contributed P121.92 billion, while the embattled AFF sector accounted for P93.16 billion.

Despite the slowdown, Western Visayas still contributed 2.9 percent to the country's national GDP, ranking eighth in terms of economic size.

This marks a step down from 2023, when the region was the second-fastest growing in the country and had breached the P1 trillion GRDP mark, recording a 7.2 percent growth prior to the NIR's creation.

NEDA Region 6 Director Arecio Casing Jr. said the economic slowdown was anticipated due to the reorganization of the region.

"We expect this level of growth due to the separation of the province of Negros Occidental and Bacolod City [...] Essentially we have half our economy, one in Western Visayas, and the other half was to NIR," he said.

He noted that Negros Occidental and Bacolod previously contributed around 40 percent of the region's economic output.

He also cited the natural tapering following 2023's "revenge spending" and post-pandemic recovery as another factor in the slowdown.

Despite falling short of the 6-7 percent target under the Regional Development Plan (RDP), Casing emphasized that the region is still growing — "albeit at a more conservative pace."

He said the Regional Development Council will soon update its midterm RDP and regional physical framework plan to align with the new economic configuration and realities after NIR's creation.

"The two islands have their strengths. It is just a matter of maximizing these strengths and looking at opportunities to tackle the weaknesses," he added.