Cebu Businesses Called to Lead Economic Growth as Government Spending Weakens
Businesses across Cebu and the broader Central Visayas region are being urged to adopt a more proactive and assertive role in sustaining economic momentum as public spending shows signs of weakening. Economists are issuing warnings that the Philippines' fastest-growing region can no longer depend solely on government stimulus to maintain its impressive growth trajectory.
Economic Briefing Delivers Clear Message
The call to action was delivered by prominent economist Ronilo Balbieran during a recent economic briefing organized by the Mandaue Chamber of Commerce and Industry. Balbieran emphasized that Central Visayas has minimal room for complacency despite posting remarkable growth of nearly eight percent in recent years—approximately three percentage points above the national average.
Cebu Province alone generated an estimated P521 billion in gross domestic product (GDP) in 2024, demonstrating the substantial scale of economic activity concentrated within the region. This impressive figure underscores why Central Visayas has consistently outperformed other areas of the country.
Private Sector Holds Economic Power
"You have a greater responsibility because you are the fastest-growing region for the last three years," Balbieran told assembled business leaders. "If you have complaints about national government spending, do your thing. You already have the power to change outcomes."
The economist pointed to revealing statistics showing that local government revenues account for only a small fraction of Cebu's total economic output. Provincial tax collections represent well below ten percent of the region's GDP, highlighting where true economic control resides.
"That gap tells you who really controls the economy," Balbieran stated emphatically. "It is the private sector, not the provincial government." These figures emphasize the critical need for businesses to pump-prime the economy through strategic investments, expansion initiatives, and innovation, particularly as fiscal support from the national government remains constrained.
Regional Outperformance and Sector Analysis
Across Central Visayas, several key sectors are expanding at rates exceeding national averages:
- Construction
- Accommodation and food services
- Retail trade
- Logistics and transportation
Tourism-linked industries, particularly in Cebu City and Lapu-Lapu City, are growing at multiples of overall economic growth, reinforcing the region's established role as a primary gateway for both trade and travel. This strong performance helps explain why international events and foreign investments continue to gravitate toward Cebu, solidifying its emergence as a major economic center outside Metro Manila.
Areas Needing Improvement and Future Directions
Despite robust overall growth, Balbieran cautioned that certain sectors are lagging behind national benchmarks. The information and communications technology (ICT) sector and finance industry specifically require attention and development to match the region's otherwise impressive performance.
The economist urged businesses and industry groups to direct more capital toward several critical areas:
- Digital infrastructure development
- Artificial intelligence adoption and implementation
- Workforce skills development and training programs
Balbieran also reiterated the necessity of accelerating long-delayed infrastructure projects, including expressway developments and logistics corridors, to adequately support the region's expanding industrial and services base. "The fastest-growing region cannot afford slow planning," he warned. "Growth brings responsibility—to invest, to innovate, and to lead."
Clear Responsibility for Business Community
For Cebu's business community, the message delivered during the economic briefing was unmistakable. With Central Visayas already outperforming the rest of the country economically, the responsibility for keeping the regional economy moving forward increasingly rests in private hands. The call to action emphasizes that sustained growth will require businesses to step beyond traditional roles and actively shape economic outcomes through strategic investment and innovation.
