The National Economic and Development Authority recently acknowledged Central Visayas’s impressive economic growth, making it the fastest in the country. Additionally, the region was declared the most significant contributor to the national Gross Domestic Product (GDP) outside Luzon.
The Services sector experienced the highest growth rate among major industries, expanding by 8.3%. It was followed by Agriculture, Fishing, and Forestry, which grew by 8%. Meanwhile, the Industry sector saw a growth of 4.1%. In terms of Gross Regional Domestic Product (GRDP) contribution, Services accounted for 70%, approximately P967.05 billion. The Industry sector contributed 23.4%, roughly P323.4 billion, while the Agriculture, Forestry, and Fishing sectors represented 6.6%, or around P90.72 billion.
The region’s 7.3% growth in Gross Regional Domestic Product (GRDP) helped propel it to being the fourth-largest contributor to the national economy and the largest in Visayas and Mindanao. In 2023, it accounted for 6.6% of the country’s total GDP.
Significantly, four key measures—GRDP growth rate, unemployment rate, and expansion rates in Gross Value Added (GVA) for Agriculture, Fishery, Forestry, and Services—exceeded the targets set in the Regional Development Plan (RDP), highlighting the region’s strength and flexibility. Meanwhile, the average inflation rate in Central Visayas remained comfortably within the RDP’s target range of 4 to 5.5%.
Cebu, the catalyst for the region’s development
The area that’s driving this exceptional growth in Central Visayas is none other than the “Queen City of South”, Cebu. But rapid expansion comes at a price, which is the region’s rising demands in energy supply. To address this issue, Domantay Consulting Ads OPC organized a meeting with business and government sectors.
The discussion focused on the substantial growth prospects in Cebu and Central Visayas, including the factors driving its escalating industries of manufacturing, IT-BPM, real estate, and tourism.
In the previous year, Central Visayas reported over 5 million tourist arrivals, showcasing a notable rise from 2022’s figure of over 3 million. This remarkable boost in tourism affected the Food Service sector, which grew by 32.3%. Meanwhile, construction activities rose by 13.6%, reflecting the increasing demand for industrial, commercial, and residential real estate. Government efforts to encourage construction and infrastructure growth also played a role in the sector’s upward trend.
Harold See, President of the Subdivision and Housing Developers Associated, highlighted Cebu’s enhanced quality of life and living conditions. He called on the government to actively ensure a stable and sufficient power supply to address the increasing energy needs, particularly in response to recent red and yellow alerts caused by the El Niño phenomenon.
Nevertheless, NEDA sees sustained growth for Central Visayas and Cebu, backed by a favorable investment environment and continuous efforts to control inflation. In the face of difficulties like El Niño, the region still expects agricultural growth. Government support is crucial, especially its measures to mitigate the effects of El Niño. Additionally, continued economic initiatives and government backing are expected to secure and enhance the region’s labor market while addressing its energy needs.
Source: Central Visayas is PH’s fastest-growing economy in 2023