The Mactan Shrine in Lapu-Lapu Metropolis within the days earlier than the pandemic. Cebu is slowly opening as much as vacationers, beginning with locals and people from different elements of Central Visayas. —CONTRIBUTED PHOTO
A dynamic tourism sector that fueled consumption helped Central Visayas stay because the fastest-growing area within the nation in 2024, beating Metro Manila which grappled with excessive inflation and borrowing prices.
Central Visayas, also referred to as Area VII, noticed its economic system develop by 7.3 % in 2024, the best among the many 18 areas within the nation, the Philippine Statistics Authority (PSA) reported on Tuesday.
Not solely did that fee of financial enlargement surpass the nationwide gross home product (GDP) development of 5.7 % final 12 months, Central Visayas once more outperformed the Nationwide Capital Area (NCR), whose economic system expanded by 5.59 %.
Central Visayas grew to become the fastest-growing regional economic system in 2023, posting a development fee of seven.3 %.
In 2023, Metro Manila’s financial development slowed to 4.9 % from 7.2 in 2022.
Among the many main sectors in Central Visayas, providers grew the quickest that 12 months with 8.3 %, adopted by agriculture, forestry, and fishing with 8 %, and business with 4.1 %.
When it comes to financial share, providers accounted for 70 %, with business and agriculture making up 23.4 % and 6.6 %, respectively.
Knowledge from the PSA confirmed that in 2022, Western Visayas was the fastest-growing area within the Philippines with 9.3 %, whereas Central Visayas expanded by 7.6 % and Metro Manila by 6.4 %.
Vacationer draw
In 2021, the Calabarzon area (composed of Cavite, Laguna, Batangas, Rizal and Quezon) was the fastest-growing area within the Philippines with a development fee of seven.6 %.
Central Visayas, which covers 4 provinces, particularly Bohol, Cebu, Negros Oriental and Siquijor, is a well-liked vacationer vacation spot within the nation recognized for its numerous points of interest, together with gorgeous seashores, historic landmarks and tradition occasions.
The Division of Tourism mentioned there have been 7.52 million vacationer arrivals within the area in 2024, a 37.03-percent bounce from the earlier 12 months, signaling a powerful business rebound.
And that vibrant tourism sector helps gas the area’s development, based on Reinielle Matt Erece, an economist at Oikonomia Advisory & Analysis Inc.
Dissecting the PSA’s report, lodging and meals service was the fastest-growing business in Central Visayas after increasing by 14.6 %.
Erece mentioned a powerful tourism sector might clarify this efficiency, as holidaymakers hold accommodations and eating places busy within the area.
That, in flip, helped grease the wheels of the area’s different development drivers.
Among the many 18 areas, development in family spending was the quickest in Central Visayas at 7.7 %.
Figures additionally confirmed that gross capital formation—the funding part of an economic system—grew by 13.8 % in Central Visayas, the second greatest throughout areas.
“The expansion of tourism in Visayas, particularly in Area VII proved to be a strong driver of prosperity for them,” Erece mentioned.
Inflation affect
Total, Central Visayas accounted for five.7 %—or P1.28 trillion—of the entire Philippine GDP of P22.24 trillion, making it the fourth largest regional economic system in 2024.
NCR, a area primarily pushed by providers and business, was nonetheless the most important regional economic system within the Philippines with a measurement of P6.94 trillion.
Leonardo Lanzona, an economist at Ateneo de Manila College, mentioned elevated inflation and borrowing prices might need weighed on client spending and enterprise enlargement in NCR.
This, in flip, might need prevented the capital area from mustering a development that would beat the enlargement of Central Visayas.
Close to zero in agri
“Whereas NCR might have a bigger share in business and providers, it has an nearly zero share in agriculture. Moreover, Central Visayas would appear to have simpler entry to meals from the opposite provinces and areas,” Lanzona mentioned.
“This additionally signifies that the federal government’s program of importing quite than counting on different areas for meals has failed to enhance meals entry in NCR,” he added.
Oikonomia’s Erece shared the identical view.
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“Typhoons and excessive import prices that slowed financial development are concentrated with NCR, which imports so much in addition to meals, which can have skilled provide chain disruptions on account of these pure calamities,” he famous. INQ
