CENTRAL Visayas, led by Cebu Province, has emerged as one of the Philippines’ fastest-growing regions. At the 2025 Philippine Economic Briefing in Cebu City on Thursday, Sept. 18, government officials praised the region’s economic performance but also warned of risks that could undermine its progress.
The Department of Finance reported that Central Visayas grew 7.3 percent in 2023 and 2024, the fastest among all 17 regions. The growth figure included Negros Oriental and Siquijor, which were still part of the region until June 2024. That month, President Ferdinand Marcos Jr. signed Republic Act 12000, reviving the Negros Island Region (NIR) with Negros Occidental, Negros Oriental and Siquijor as its provinces.
The big question
How did Central Visayas surge ahead of the rest of the Philippines, and what challenges could stall its growth?
The Cebu factor
Finance Secretary Ralph Recto credited Cebu for much of the momentum. He described the province as “front and center” of the country’s growth story.
“Cebu has outgrown its role as a regional hub,” Recto said. “It now stands as a national powerhouse that competes, creates and connects the entire Philippines to the world.”
But he added that economic data must translate into everyday gains for residents.
“The numbers are promising, but people must feel it on the ground — better jobs, better wages, and better services.”
What’s powering the region’s growth
Central Visayas’ economic rise comes from a mix of old and new industries:
Tourism: The region is close to pre-pandemic levels in domestic tourism, reaching 98 percent of 2019 volumes. While local travel has surged, foreign arrivals remain uneven. South Korean visitors — once the top market — fell 30 percent in April to June 2025, showing global tourism remains volatile.
Technology: Cebu now accounts for 15 percent of the nation’s full-time information technology and business process management (IT-BPM) workforce. To keep its lead, the Philippine Economic Zone Authority launched its first AI tech academy, which aims to transform 45 ecozones into advanced manufacturing and artificial intelligence hubs.
Shipbuilding: Cebu is home to a major shipbuilding facility. Japanese firm Tsuneishi recently built the world’s first methanol-powered bulk carrier in Balamban, marking a milestone for green shipping.
Infrastructure: Billions of pesos are being poured into transport and logistics projects, including the Cebu Bus Rapid Transit, the Cebu International Container Port, the Bohol-Panglao International Airport upgrade, and the planned Cebu-Mactan fourth bridge and coastal road, which are expected to reduce airport travel time.
Together, these projects strengthen Cebu’s role as both a logistics hub — handling more than 80 percent of the nation’s shipping capacity — and a technology gateway.
By the numbers: A mixed picture
Carlos Bernardo Abad Santos, undersecretary of the Department of Economy, Planning and Development, presented the region’s economic pulse:
Inflation: three percent in August, within the government’s two–four percent target.
Underemployment: Down to 6.5 percent, a sign of better job quality.
Unemployment: 6.1 percent.
Poverty: Fell from 27.6 percent in 2021 to 17.3 percent in 2023. The government hopes to cut it to single digits by 2028.
Investments: Foreign investments dropped 14.5 percent in early 2025, though local investments rose 20.4 percent.
Trade: Foreign trade contracted 10.7 percent due to weaker exports and imports. Japan remains the top export destination, while China leads imports of semiconductor materials.
Tourism: Domestic tourism is almost fully back, but global arrivals remain uncertain.
The data shows Central Visayas is improving in job quality and poverty reduction but faces pressure from weakening trade and foreign investments.
What risks lie ahead
Despite the upbeat growth numbers, officials flagged risks that could hit the region:
Global headwinds: The U.S. economy is shifting trade and monetary policies that could ripple through export markets.
Agricultural limits: Shortfalls in farm output could strain food supply and increase inflationary pressures.
Foreign investment slowdown: With foreign direct investment falling, the region’s growth may rely more heavily on local capital.
Uneven recovery in international tourism: Dependence on a few markets, such as South Korea, makes the tourism industry vulnerable to external shocks.
Still, Santos said reforms in water security, green energy and social protection are underway to make growth more sustainable. A community-based monitoring system is also being rolled out to ensure government aid reaches families most in need.
What’s the outlook
The government projects inflation will remain within the two–four percent target range. Exports may rebound by the last quarter of 2025 as global demand picks up and the Philippines benefits from new trade deals, including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.
Santos praised the region’s progress but urged caution.
“Great work, Region 7. But our work is far from complete,” he 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.”
Why this matters beyond Central Visayas
Central Visayas’ growth is not just a regional story. Cebu’s transformation into a national economic powerhouse means its performance now influences national growth. As a logistics hub, its ports and airports are critical to trade. As a technology hub, its IT-BPM workforce connects the Philippines to global industries. And as a tourism hub, its rebound can lift service-sector jobs across the country.
The challenge is ensuring the benefits reach all — from workers in BPO offices and shipyards to farmers and small businesses in the countryside. / EHP