Cebu positioned for growth despite economic challenges

Local

CEBU is well-positioned for continued growth as opportunities emerge in agribusiness, food processing, renewable energy, digitalization, logistics, infrastructure development, tourism, and e-commerce, according to economist Dr. Winston Padojinog, president of the University of Asia and the Pacific.

Speaking at an economic forum, Padojinog said Cebu’s diversified economy remains one of its greatest strengths.

Supported by agriculture, manufacturing, services, tourism, entrepreneurship, overseas remittances, and a resilient IT-BPO sector, the province has built a strong foundation capable of weathering economic uncertainties.

Cebu City continues to serve as the region’s services hub, with trade, finance, business services, and real estate driving much of its economic activity.

Meanwhile, Mandaue and Lapu-Lapu cities provide a strong industrial base through manufacturing and related industries, creating an integrated economic ecosystem across Metro Cebu.

Padojinog also highlighted Cebu’s role as a major logistics and trading center in the Visayas.

Its open economy supports the movement of goods across the region and contributes to the continued growth of transport, warehousing, and distribution services.

Despite these strengths, inflation remains a key concern.

Rising production costs, transportation expenses, utility rates, and imported inputs have increased prices, affecting consumers and businesses alike.

Cebu’s reliance on imported goods also makes it vulnerable to global price movements and currency fluctuations.

The region, however, continues to benefit from stable income sources.

Employment in the BPO, tourism, finance, and professional services sectors helps sustain consumer spending, while remittances from overseas Filipino workers provide additional support to many households.

A weaker peso also enhances the competitiveness of exports, tourism, and BPO services.

Padojinog noted that the country’s economic growth slowed in the first quarter of 2026 due to weaker government spending and softer private investment.

He emphasized the need to attract more foreign investments to support infrastructure development, generate jobs, and sustain long-term growth.

Despite ongoing economic headwinds, Cebu’s broad-based economy and expanding growth sectors position it to remain one of the country’s most resilient regional economies.(MyTVCebu)