PH, Central Visayas economic performance outlook

CEBU CITY – The Philippine economy grew by 4.4 percent in 2025, down from 5.7 percent in 2024, with services contracting by 5.9 percent while Central Visayas, valued at 1.32 trillion, grew by 3.7 percent despite global and domestic headwinds, with key growth sectors include wholesale and retail, financial services, and human health, while manufacturing declined by 9 percent.

Evelyn Nacario-Castro, Assistant Regional Director of the Department of Economy, Planning, and Development (DEPDev)-Region 7 presented the economic outlook of the country and Central Visayas at the Investment and Entrepreneurship Summit, June 4 at Radisson Blu Hotel hosted by the Cebu Chamber of Commerce and Industry (CCCI) as an opening salvo for the Cebu Business Months (CBM) 2026.

Castro went on to say that in the first quarter of 2026, growth moderated to 2.8 percent due to domestic and global pressures, including the Middle East crisis. Unemployment in Central Visayas averaged 4.59 percent, lower than the national rate of 4.68 percent.  

Inflation was higher in Central Visayas due to geopolitical tensions and disasters, while future growth depends on energy diversification, improved logistics, and policy reforms. The region aims for stable growth, managed inflation, and sustained investments, she added.

      Challenges, growth drivers, macroeconomic indicators and labor statistics

Central Visayas faced challenges such as back-to-back typhoons, flood control scandals, and declining investor confidence.  The economy is heavily services-driven at 71 percent, followed by industry at 24 percent and agriculture at 4.8 percent.

Services continue to lead growth at 5.2 percent, while agriculture declined slightly, Castro noted that major contributors to the regional economy include wholesale and retail, financial insurance activities, real estate, and human health.

On macroeconomic indicators and labor stats, the Philippines labor market saw unemployment rise from five percent in March 2026 but remains competitive regionally, with unemployment rate in Central Visayas averaged at 4.59 percent in 2025, lower than the national average of 4.68 percent.

Indicators said that underemployment in Central Visayas was consistently lower than the national level, with rates of 9.7 percent and 13.7 percent respectively.  Inflation rates were higher in Central Visayas due to geopolitical tensions and supply disruptions from disasters, the report said.

Future growth outlook, strategic priorities

According to Castro that the economy is expected to grow but is shaped by global shocks and domestic challenges.  Central Visayas is particularly inflation-sensitive due to its geography and economic structure.

Key strategic priorities include energy diversification, improving transport and supply chains, and enhancing investor confidence through policy reforms. The region must also focus on diversifying agriculture into higher value segments and investing in skills, health, and education to build a competitive workforce, the report said.

“There are three possible paths for the region: moderate growth, downside scenario, and upside scenario.  In the baseline scenario, growth is expected to normalize to 4-5 percent, with moderate inflation and selective investments,” Castro added.

According to Castro, the downside scenario involves higher oil prices, global recession risks, and slower tourism growth, with potential unemployment rising in tourism-linked sectors.  The upside scenario sees oil prices stabilizing, logistics improvements, and manufacturing diversification, with growth reaching 5-6 percent.

“The future is uncertain, but the goal is to achieve stable growth, controlled regulation, and sustained investments.  Achieving this requires coordinated management, fiscal and structural policies, and strategic investments informed by timely statistics and data, Castro said.

The region must focus on innovation, collaboration, and the determination of all leaders to sustain and protect growth, with a call to action for all stakeholders to support the economic growth and development of Central Visayas, Castro concluded. (Photos: MBCNewman)

 

 

 

 

 

Gov’t leaders, lawmakers convene to shape dev’t direction of Central Visayas

CEBU CITY – The Regional Development Council (RDC)-Central Visayas convened the members of the Joint RDC Executive and Advisory Committees, regional line agencies, local chief executives, and district representatives from across the region, at the Batasang Pambansa Complex in Quezon City on February 9 for a high-level consultation and technical review of the region’s annual development budget alignment for presentation for the proposed national budget for 2027.

“We gather today not only to review numbers and proposals, but more importantly, to shape the development direction of Central Visayas for FY 2027 and beyond.   This consultation provides a vital platform for aligning our local and regional priorities with the national budget, ensuring that our plans translate into real, tangible outcomes for the people we serve,” Cebu governor Pamela Baricuatro said, in her opening message as RDC-7 chair.

This is the first time that the House of Representatives conducted such high-level consultation to align regional projects with the national budget in coordination with the DepDev and RDC-7, which are now working to institutionalize this process.

Governor Baricuatro stressed that the consultation went beyond reviewing figures and proposals, framing it instead as a decisive moment for the region’s long-term direction, underscoring the need to align all local and regional priorities with the national budget so that government planning would produce real and measurable gains for communities.

Regional line agencies presented their respective priority programs, activities, and projects, highlighting both persistent development challenges and emerging opportunities across Central Visayas.  Baricuatro called on the region’s lawmakers to help move these priority investments forward, from proposal to funding and full implementation.

“By speaking with one strong regional voice and rallying behind a clear set of priorities, we strengthen our case for national support,” adding that unity and preparedness would demonstrate Central Visayas’ resolve to pursue development interventions with the greatest impact on people’s lives, Baricuatro stated.

Among those present at the consultative meeting, with Baricuatro as RDC-7 chair, were Bohol Governor Aris Aumentado, RDC Co-Chairperson Melanie Ng, DEPDev Regional Director Jennifer Bretaña, Cebu City Mayor Nestor Archival, Mandue City Mayor Jonkie Ouano, as well as Central Visayas lawmakers, including Cebu City North District Representative Edu Rama, who hosted the event.

According to DEPDev-7 regional director, Jennifer Bretana that the consultation forms part of the RDC’s continuing effort to deepen coordination between regional agencies and national policymakers, reinforcing collaborative planning as a foundation for sustainable and inclusive growth in Central Visayas. (Photos: Cebu Capitol PIO)

Baricuatro now chairs RDC7, vows to push big-ticket infra

CEBU – Cebu governor Pamela Baricuatro now chairs the Regional Development Council (RDC-7) seen by many as her edge and added influence to advance major infrastructure projects in Cebu and Bohol.  

Her appointment as RDC7 chair sparked some discussions among the opposition and has drawn debate and skepticism from some quarters within the DDS community saying that she shouldn’t accept the appointment if she is a true DDS supporter.

“One important point: Malacañang is fully aware of my political affiliation. They appointed me anyway. This isn’t about them being partisan; it’s about what’s best for Cebu. If the DDS community sees partisan bias here, I ask you to judge by results and by the outcomes for our people, not by slogans,” Baricuatro wrote in her Facebook post.

She said that with her at the helm of RDC-7, her top priority infrastructure projects will be accelerated and made possible, including the Metro Cebu Expressway and Water security and other road diversion projects.

This is not about politics as usual. It’s about Cebu getting a unified, national-backed plan that speeds up real, tangible benefits for families—jobs, healthcare, roads, schools, and locally driven development, Baricuatro added.

“I am really committed to bring big programs and projects to Cebu,” she said at her regular media briefing on October 29 at the Cebu South Bus Terminal (CSBT) where she inspected the facility's readiness ahead of the expected influx of passengers for All Saints’ and All Souls’ Days.

Baricuatro points to some key initiatives already in motion such as the feasibility study for the Talisay–Naga Diversion Road that has been approved, a key project she wants completed within her term as governor and she plans to push for it in future RDC meetings.

She said that once this coastal road diversion is completed, this would ease traffic congestion along Cebu’s southern corridor passing through Talisay City, Minglanilla, and the City of Naga, providing motorists with an alternate route to and from southern Cebu.

Among her other prio
rities are water system projects, the Metro Cebu Expressway connecting the City of Naga in the south to Danao City in the north, and additional diversion roads across the province.

Baricuatro also recognized that her new role requires her to look beyond Cebu’s interests and work for the development of the entire Central Visayas region. “As committed, I am to deliver the best programs for Cebu, I will also do my best for the whole Region 7,” she stated.

Baricuatro is set to take her oath in November before the President in Malacañang where she plans to discuss the region’s infrastructure priorities with the chief executive. Her primary goal is to promote the welfare of Cebu and the region.

The RDC is the highest policy-making body in the region and serves as the counterpart of the DEPDev Board at the subnational level. It coordinates and directs economic and social development efforts, ensuring local initiatives align with national development goals. (Photos: DepDev-FB)