BUSINESS sentiment in Central Visayas has remained positive for the second half of 2019 as inflation continues to cool down.
Fernando Silvoza, deputy director at the Department of Economic Statistics of the Bangko Sentral ng Pilipinas (BSP), said the region’s stable inflation, low unemployment rate and expanding banking system are expected to sustain growth in the southern economic hub.
From January to July this year, inflation in Region 7 averaged 2.1 percent, within the government’s target.
“Business sentiment in Central Visayas remains positive for the third and fourth quarter of 2019,” Silvoza said at a recent BSP event in Cebu City.
Based on BSP’s survey, overall business confidence index in the region in the second quarter stood at 44.4 percent, although lower than the 50 percent in the first quarter.
Silvoza also noted the low jobless rate in the region also firms up growth prospects.
As of April 2019, the total percentage of people looking for work in Central Visayas went down to 17.8 percent from 21.7 percent in the same period last year.
Its unemployment rate stood at 5.5 percent, down from 5.7 percent while underemployment also decreased to 12.3 percent from 16 percent.
“Overall, stable prices, low unemployment rate and increasing banking indicators may sustain economic growth in Central Visayas,” the BSP official said.
As of the first quarter, the region had a total of 855 bank branches, reflecting a robust growth in the banking industry.
The banking sector was seen to continue to support the economic expansion in the region.
In 2018, the regional economy grew 7.6 percent, higher than the national growth of 6.2 percent, sustaining its perfromance as one of the fastest growing economies in the Philippines.