Central Visayas' foreign trade grew 5 percent to $3.41 billion in Q1 2026 as imports rose to $2.17 billion and exports reached $1.24 billion, according to DepDev.
The region's foreign trade deficit widened to $937.35 million, with small electric motors leading exports at $296.48 million and China serving as the top import source at $724.64 million.
Domestic trade achieved a P74.37-billion surplus—reversing a P28.18-billion deficit from a year earlier—as outbound commodity shipments surged 177.9 percent to P100.50 billion.
CENTRAL Visayas’ foreign trade expanded by five percent in the first quarter of 2026 despite global economic uncertainty, as stronger imports outpaced export growth and widened the region’s trade deficit.
According to the Central Visayas Regional Economic Situationer for the First Quarter of 2026, released by the Department of Economy, Planning and Development (DepDev), total foreign trade reached $3.41 billion in January to March, up from $3.25 billion a year earlier. Imports rose 5.6 percent to $2.17 billion, while exports increased 4.1 percent to $1.24 billion.
The region’s trade deficit widened to $937.35 million from $871.63 million a year earlier as import growth exceeded export expansion.
The increase in imports reflected sustained demand for industrial raw materials, fuel, agricultural commodities and intermediate goods, while export growth pointed to continued activity in the electronics and shipbuilding sectors.
Export markets
Japan remained Central Visayas’ largest export market, accounting for $298.28 million in shipments, slightly higher than a year earlier, with vessel exports continuing to dominate. South Korea emerged as the second-largest market after exports surged 73.6 percent to $229.50 million, driven mainly by shipments of small electric motors.
Exports to China, however, fell 14.5 percent, reflecting softer industrial demand, while Hong Kong remained a major destination for electronics-related products. East Asia continued to account for the bulk of the region’s export market.
Small electric motors remained the region’s top export commodity at $296.48 million, followed by various parts and accessories worth $179.09 million and vessels valued at $176.25 million. Vessel exports increased 8.5 percent, reflecting sustained shipbuilding activity in Cebu, while copper exports declined 13.9%.
China remained the largest source of imports at $724.64 million, followed by Japan ($223.57 million), the United States ($212.65 million) and South Korea ($195.94 million). Imports from the United States and South Korea grew 24.1 percent and 37.6 percent, respectively, while imports from Japan fell 13.2 percent.
Printed circuit assemblies remained the region’s largest import commodity despite a 3.2 percent decline in value. Imports of soybean meal and animal feed more than doubled, while coal imports rose 5.1 percent amid higher electricity demand.
The report said the continued importation of industrial and agricultural inputs suggests manufacturing and food-related industries remained active during the quarter. However, it noted that the region’s dependence on imported fuel and raw materials leaves businesses vulnerable to fluctuations in global commodity prices and foreign exchange movements.
It also said a weaker peso could improve the competitiveness of locally produced goods in foreign markets, particularly electronics, shipbuilding and manufacturing, although it would also raise the cost of imported fuel, raw materials and industrial inputs.
Domestic trade
Separately, Central Visayas recorded a sharp turnaround in domestic trade, posting a P74.37-billion trade surplus in the first quarter from a P28.18-billion deficit a year earlier.
Total domestic trade reached P126.62 billion, consisting of P100.50 billion in outbound commodities and P26.13 billion in inbound shipments. Outflows surged 177.9 percent, while inflows declined 59.4 percent.
The region recorded the second-highest domestic trade outflow in the country after Calabarzon, accounting for 12.2 percent of total national outbound trade.
Water transport remained the dominant mode for commodity movement, with outbound shipments by sea climbing 188.9 percent to P97.40 billion. Air cargo outflows more than doubled to P430.03 million, while road transport also posted gains.
The report said the surge in outbound domestic trade may have been driven partly by precautionary inventory-building by businesses amid concerns over possible supply disruptions from the U.S.-Israel-Iran conflict. Rising oil prices and logistics costs could weigh on trade activity in the coming months, it added. / KOC