BUSINESSES in Cebu and the wider Central Visayas region are being urged to take a more assertive role in sustaining economic growth as public spending weakens, with economists warning that the country’s fastest-growing region can no longer rely on government stimulus alone.
The call was made by economist Ronilo Balbieran during an economic briefing organized recently by the Mandaue Chamber of Commerce and Industry.
Balbieran said Central Visayas has little room for complacency after posting growth of nearly eight percent in recent years — about three percentage points above the national average. Cebu Province alone generated an estimated P521 billion in gross domestic product (GDP) in 2024, highlighting the scale of economic activity concentrated in the region.
“You have a greater responsibility because you are the fastest-growing region for the last three years,” Balbieran told business leaders. “If you have complaints about national government spending, do your thing. You already have the power to change outcomes.”
Private sector holds the levers
Balbieran pointed out that local government revenues account for only a small share of Cebu’s total economic output, with provincial tax collections representing well below 10 percent of GDP.
“That gap tells you who really controls the economy,” he said. “It is the private sector, not the provincial government.”
The figures, he added, underscore the need for businesses to “pump-prime” the economy through investments, expansion, and innovation, particularly as fiscal support from the national government remains constrained.
Central Visayas outpacing the nation
Across Central Visayas, key sectors — including construction, accommodation and food services, retail trade, and logistics — are expanding faster than the national average. Tourism-linked industries, especially in Cebu City and Lapu-Lapu City, are growing at multiples of overall economic growth, reflecting the region’s role as a gateway for trade and travel.
Balbieran said the strong performance helps explain why international events and investments continue to gravitate toward Cebu, reinforcing its emergence as a major economic center outside Metro Manila.
Despite robust growth, Balbieran cautioned that some sectors — particularly information and communications technology (ICT) and finance — are lagging national benchmarks. He urged businesses and industry groups to direct more capital toward digital infrastructure, artificial intelligence adoption, and skills development to sustain competitiveness.
He also reiterated the need to accelerate long-delayed infrastructure projects, including expressways and logistics corridors, to support the region’s expanding industrial and services base.
“The fastest-growing region cannot afford slow planning,” he said. “Growth brings responsibility — to invest, to innovate, and to lead.”
For Cebu’s business community, the message was clear — with Central Visayas already outperforming the rest of the country, the responsibility for keeping the economy moving increasingly rests on private hands. / KOC