Cities of Iloilo, Bacolod Lead W. Visayas’ Economic Growth

By Francis Allan L. Angelo and Mariela Angella Oladive

The cities of Iloilo and Bacolod registered double-digit economic growth in 2023, making them the fastest-growing economies in Western Visayas, according to the Philippine Statistics Authority.

Iloilo City posted a growth rate of 10.5 percent, edging out Bacolod City’s 10 percent growth. Both figures significantly surpassed the regional average growth rate of 7.2 percent.

Aklan came in third with a growth rate of 9.5 percent, followed by Guimaras at 7.9 percent. The remaining provinces—Negros Occidental, Capiz, Antique, and Iloilo—also posted positive growth, underscoring the economic resilience of Western Visayas.

Negros Occidental retained its position as the largest contributor to the regional economy, accounting for 25.7 percent of the PHP 1.02 trillion regional Gross Domestic Product (GDP).

The province of Iloilo followed with a 21.0 percent share, while Iloilo City and Bacolod City accounted for 15.6 percent and 14.3 percent, respectively.

Capiz contributed 7.8 percent to the regional economy, while Antique, Aklan, and Guimaras accounted for 7.1 percent, 6.8 percent, and 1.7 percent, respectively.

Jerry L. Dolutan, officer-in-charge of PSA RSSO VI-Iloilo attributed Iloilo City’s remarkable performance to its vibrant services sector.

“Accommodation and food services surged as tourism rebounded in the post-pandemic period, with Iloilo City at the forefront,” Dolutan said in his presentation.

RECORD SURGE

The economy of Iloilo City and the Province of Iloilo experienced robust growth in 2023, driven by strong performances in the services, transportation, and accommodation sectors, according to the Philippine Statistics Authority (PSA).

Iloilo City’s Gross Domestic Product (GDP) reached PHP 160.28 billion, reflecting a 10.5% growth rate, making it the second fastest-growing highly urbanized city in the Philippines.

The services sector, which contributed 87.7% to the city’s GDP, was pivotal to its economic expansion.

Accommodation and food services emerged as the fastest-growing industry, posting a 48.3% increase, driven by a resurgence in tourism and events in a post-pandemic scenario.

Other services and transportation and storage sectors also grew by 28% and 18.9%, respectively.

Wholesale and retail trade made the largest contribution to growth at 2.3 percentage points, while accommodation and food services added 1.7 percentage points, and financial and insurance activities accounted for 1.2 percentage points.

Meanwhile, the Province of Iloilo reported a GDP of PHP 215.42 billion, up 4.6% from PHP 206.01 billion in 2022. The province accounted for 21% of Western Visayas’ total GDP of PHP 1.02 trillion.

Services dominated the provincial economy, contributing 56.5% of the GDP.

Transportation and storage led the province’s growth with a 28.8% increase, followed by accommodation and food services at 23.4% and other services at 19.7%.

The industry sector accounted for 20.8% of Iloilo’s economy.

Despite the gains in services, the agriculture, forestry, and fishing sectors in the province faced a 9% decline, highlighting the need for urgent interventions in these areas.

Iloilo City’s per capita GDP stood at PHP 337,805, while the province’s per capita GDP was PHP 101,693.

Iloilo City outperformed its regional counterparts, including Bacolod, Aklan, and Guimaras, which posted growth rates of 10%, 9.5%, and 7.9%, respectively.

Western Visayas recorded an average growth rate of 7.2%.

BPO, TOURIST MAGNETS

Bacolod City, meanwhile, benefitted from its strong IT-business process outsourcing (BPO) sector and a steady recovery in retail trade.

Mayor Alfredo Abelardo Benitez noted, “Our city remains a magnet for investors, especially in the BPO and tourism sectors, which drive employment and economic growth.”

Meanwhile, Aklan’s economy expanded by 9.5 percent in 2023, reaching a Gross Domestic Product (GDP) of PHP 69.61 billion. This follows a significant 22.5 percent growth in 2022.

Among the province’s 16 industries, wholesale and retail trade, including the repair of motor vehicles and motorcycles, contributed the most to the economy, accounting for 22.3 percent of GDP.

Transportation and storage followed with an 18 percent share, while agriculture, forestry, and fishing accounted for 11.1 percent.

The fastest-growing industry was accommodation and food service activities, which surged by 58.9 percent.

Other significant growth rates were recorded in other services at 48.8 percent, construction at 23.2 percent, and electricity, steam, water, and waste management at 14.9 percent. However, agriculture, forestry, and fishing experienced a 4.6 percent decline.

Excluding highly urbanized cities in Western Visayas, Aklan had the fastest economic growth in the region, surpassing Guimaras, which grew by 7.9 percent, and Negros Occidental, which recorded a 6.9 percent increase.

SMALL BUT…

Guimaras, despite being the smallest contributor to the regional economy, recorded higher-than-average growth, thanks to its expanding agricultural and food processing sectors.

The island-province has been ranked the 8th fastest-growing economy among the 82 provinces in the Philippines for 2023, as announced during the Provincial Product Accounts Dissemination Forum on the 2023 Economic Performance of Provinces and Highly Urbanized Cities (HUCs) on November 26.

According to Chief Statistical Specialist Nelida Losare of PSA-Guimaras, the province achieved an impressive 7.9% growth in its Gross Domestic Product (GDP), climbing from PHP 16.14 billion in 2022 to PHP 17.42 billion in 2023.

The services sector led the growth, contributing 55.2% of the province’s GDP and growing by 12.4%. Key drivers included a 26.6% increase in accommodation and food services, along with gains in other services and professional business activities.

Losare noted that the services sector’s growth makes Guimaras the 3rd fastest-growing province in this sector nationwide. (With a report from PSA-Aklan)