Central Visayas economy holds firm despite highest inflation in Q1 2026

Local

CENTRAL Visayas maintained solid economic momentum in the first quarter of 2026 despite facing the country's highest inflation rate and mounting global uncertainties, according to the Department of Economy, Planning and Development-Central Visayas' (DEPDev-7) Regional Economic Situationer Report released on July 3.

The report showed that stronger investment activity, expanding foreign and domestic trade, and increased movement of goods within the region helped offset the effects of rising prices and external economic pressures.

Inflation averaged 6.33 percent during the January-to-March period, more than double the 2.93 percent recorded a year earlier.

Price increases accelerated from 5.6 percent in January to 7.4 percent in March, making Central Visayas the highest-inflation region in the country for the eighth straight month.

DEPDev said the January uptick was fueled by increased spending on restaurants and accommodations during the Sinulog Festival, while food prices remained elevated due to lingering supply disruptions caused by last year's typhoons and the Northern Cebu earthquake.

By March, higher transport costs driven by rising global oil prices, along with increased electricity and utility rates, became the main contributors to inflation.

Despite these challenges, approved investments reached P9.85 billion, only slightly below last year's P9.99 billion, allowing Central Visayas to remain the top investment destination outside the Greater Capital Region.

Foreign investment approvals climbed 35.26 percent to P455.27 million, reflecting continued confidence in the region's business process outsourcing, tourism, energy, and manufacturing sectors, although domestic investments slipped amid higher borrowing costs and economic uncertainty.

Trade performance also remained favorable.

Total foreign trade grew 5 percent, with imports increasing faster than exports, resulting in a wider trade deficit of USD937.35 million.

Japan remained the region's biggest export market, followed by South Korea, where shipments posted significant growth.

China continued to be the leading source of imports, supplying fuel, industrial materials, and agricultural products.

Meanwhile, domestic trade surged to P126.62 billion, driven by a sharp rise in outbound shipments that produced a P74.37-billion trade surplus.

Sea transport accounted for most commodity movement, reinforcing Cebu's role as a key logistics hub.

Business registrations, however, declined 7.75 percent as entrepreneurs faced higher operating costs and inflation.

Even so, DEPDev-7 said the region's outlook remains optimistic, supported by sustained export demand, tourism recovery, infrastructure developments, and preparations for the 48th ASEAN Summit, although risks from higher oil prices, peso depreciation, and possible El Niño conditions continue to pose challenges.(MyTVCebu)