‘CONSERVATIVE’ GROWTH: Western Visayas Economy Hits PHP641.76B Amid NIR Separation

By Rjay Zuriaga Castor

Western Visayas sustained its economic momentum in 2024 with a Gross Regional Domestic Product (GRDP) of PHP641.76 billion, despite the separation of Negros Occidental and Bacolod City following the creation of the Negros Island Region (NIR).

The Philippine Statistics Authority (PSA) reported during a press briefing on April 22 that the regional economy grew by 4.3%, a slowdown from the 6.8% growth posted in 2023.

PSA-Region 6 officer-in-charge Nelida Amolar attributed the slow GDP growth of Western Visayas due to the separation of Negros Occidental and Bacolod City with the creation of the Negros Island Region.

Despite the deceleration, the region still posted an increase of PHP 26.5 billion in economic value from the recalibrated 2023 GRDP of PHP 615.29 billion, which excludes the economic contributions of Negros Occidental and Bacolod City.

Amolar said all sectors posted positive growth in 2024 except for Agriculture, Forestry and Fishing (AFF), which declined by 7.3%, further down from a 6.22% drop in 2023.

The services sector remained the region’s growth driver with a 7.4% increase, slightly lower than 10.8% in 2023.

The industry sector expanded by 3.9%, compared to 6.7% growth in the previous year.

Amolar emphasized that Western Visayas remains predominantly services-based, with services accounting for 66.5% or PHP426.69 billion of the GRDP.

The industry sector followed with PHP121.92 billion or 19%, while AFF contributed PHP93.16 billion or 14.5%.

8th Largest Economy in 2024

Western Visayas ranked as the 8th largest economy among the country’s 18 regions, contributing 2.9% to the national gross domestic product.

This marked a significant shift from its previous position as the second-fastest growing regional economy in 2023, when the region surpassed the PHP1 trillion GRDP mark at a 7.2% growth rate.

In contrast, Central Visayas emerged as the fastest-growing regional economy in 2024.

Despite the GRDP slowdown, residents of Western Visayas increased their spending.

Gross Regional Domestic Expenditure (GRDE) grew by 4.3%, driven by higher investments in durable equipment (16.5%), government spending (7.5%), and service exports (6.9%).

The region also improved in per capita income, ranking ninth nationwide.

Per capita GRDP rose by 3.6% to PHP132,404 in 2024 from PHP127,776 in 2023.

Meanwhile, per capita Household Final Consumption Expenditure reached PHP125,821, a 2.6% increase from the previous year, though slower than the 4.7% growth recorded in 2023.

This ranked the region 8th in per capita household spending.

‘Conservative Growth’ After NIR Creation

The NIR’s establishment caused Western Visayas to fall short of its 2024 Regional Development Plan (RDP) target of 6% to 7% growth, according to National Economic and Development Authority Region 6 (NEDA-6) Director Arecio Casing Jr.

“We expected this level of growth due to the separation of Negros Occidental and Bacolod City,” Casing said.

“Essentially, we now have half of the original economy—the other half is now part of NIR,” he added.

He said the two areas previously contributed roughly 40% to Western Visayas’ total GRDP before the NIR’s creation.

Casing noted that the growth moderation also reflects a natural tapering after 2023’s postpandemic rebound and so-called “revenge spending.”

Despite missing the growth target, Casing emphasized that the regional economy remains on track.

“We are still growing, albeit at a more conservative pace,” he said.

NEDA-6 will update its midterm RDP and Regional Physical Framework Plan to align with the region’s new economic realities and goals.