Central Visayas again tops NCR as fastest-growing region

MANILA, Philippines — A dynamic tourism sector that fueled consumption helped Central Visayas remain the fastest-growing region in the country in 2024, beating Metro Manila, which grappled with high inflation and borrowing costs.

Central Visayas, also known as Region VII, saw its economy grow by 7.3 percent in 2024, the highest among the 18 regions in the country, the Philippine Statistics Authority (PSA) reported on Tuesday.

Not only did that rate of economic expansion surpass the national gross domestic product (GDP) growth of 5.7 percent last year, Central Visayas again outperformed the National Capital Region (NCR), whose economy expanded by 5.59 percent.

Central Visayas became the fastest-growing regional economy in 2023, posting a growth rate of 7.3 percent.

In 2023, Metro Manila’s economic growth slowed to 4.9 percent from 7.2 in 2022.

Among the major sectors in Central Visayas, services grew the fastest that year with 8.3 percent, followed by agriculture, forestry, and fishing with 8 percent, and industry with 4.1 percent.

In terms of economic share, services accounted for 70 percent, with industry and agriculture making up 23.4 percent and 6.6 percent, respectively.

Data from the PSA showed that in 2022, Western Visayas was the fastest-growing region in the Philippines with 9.3 percent, while Central Visayas expanded by 7.6 percent and Metro Manila by 6.4 percent.

Tourist draw

In 2021, the Calabarzon region (composed of Cavite, Laguna, Batangas, Rizal and Quezon) was the fastest-growing region in the Philippines with a growth rate of 7.6 percent.

Central Visayas, which covers four provinces, namely Bohol, Cebu, Negros Oriental and Siquijor, is a popular tourist destination in the country known for its diverse attractions, including stunning beaches, historical landmarks and culture events.

The Department of Tourism said there were 7.52 million tourist arrivals in the region in 2024, a 37.03-percent jump from the previous year, signaling a strong industry rebound.

And that vibrant tourism sector is helping fuel the region’s growth, according to Reinielle Matt Erece, an economist at Oikonomia Advisory & Research Inc.

Dissecting the PSA’s report, accommodation and food service was the fastest-growing industry in Central Visayas after expanding by 14.6 percent.

Erece said a strong tourism sector could explain this performance, as holidaymakers keep hotels and restaurants busy in the region.

That, in turn, helped grease the wheels of the region’s other growth drivers.

Among the 18 regions, growth in household spending was the quickest in Central Visayas at 7.7 percent.

Figures also showed that gross capital formation—the investment component of an economy—grew by 13.8 percent in Central Visayas, the second best across regions.

“The growth of tourism in Visayas, especially in Region VII proved to be a robust driver of prosperity for them,” Erece said.

Inflation impact

Overall, Central Visayas accounted for 5.7 percent—or P1.28 trillion—of the total Philippine GDP of P22.24 trillion, making it the fourth largest regional economy in 2024.

NCR, a region mainly driven by services and industry, was still the biggest regional economy in the Philippines with a size of P6.94 trillion.

Leonardo Lanzona, an economist at Ateneo de Manila University, said elevated inflation and borrowing costs might have weighed on consumer spending and business expansion in NCR.

This, in turn, might have prevented the capital region from mustering a growth that could beat the expansion of Central Visayas.

Near zero in agri

“While NCR may have a larger share in industry and services, it has an almost zero share in agriculture. Furthermore, Central Visayas would seem to have easier access to food from the other provinces and regions,” Lanzona said.

“This also indicates that the government’s program of importing rather than relying on other regions for food has failed to improve food access in NCR,” he added.

Oikonomia’s Erece shared the same view.

“Typhoons and high import costs that slowed economic growth are concentrated with NCR, which imports a lot as well as food, which may have experienced supply chain disruptions due to these natural calamities,” he noted.

(2025/04/23-02:13)