Iloilo’s economy grows 5.9 percent as farming rebounds

ILOILO CITY — Services continued to account for nearly 60 percent of Iloilo province’s economy in 2025, while agriculture, forestry, and fishing (AFF) posted the fastest growth among major industries, according to the Philippine Statistics Authority (PSA).

At constant 2018 prices, services made up 59.9 percent of the province’s PHP 232.13 billion gross domestic product (GDP), followed by industry at 20.1 percent and AFF at 19.9 percent.

Constant 2018 prices remove the effect of inflation, making figures comparable across years.

The PSA estimated Iloilo’s per capita GDP at PHP 109,269 in 2025, up 5.1 percent from PHP 103,964 in 2024, according to the Provincial Product Accounts (PPA) released Tuesday.

Per capita GDP measures average economic output per person and does not represent individual income.

Iloilo remained the largest provincial economy in Western Visayas, accounting for 34 percent of the region’s PHP 683.44 billion GDP.

The province’s economy grew by 5.9 percent in 2025, up from 1.6 percent in 2024.

Jerry Dolutan, chief statistical specialist at PSA Iloilo, said services and industry have increased in size since 2018, while AFF has become volatile.

The services sector has risen consistently since the COVID-19 pandemic, starting at PHP 91.24 billion, according to the PSA data.

Before the pandemic, the sector rose from PHP 98.53 billion in 2018 to PHP 104.72 billion in 2019.

The industry sector slipped slightly to PHP 46.77 billion in 2025 from PHP 46.80 billion in 2024.

It had grown steadily since 2020, when it fell to PHP 38.43 billion from PHP 38.55 billion in 2018 and PHP 41.32 billion in 2019.

AFF rose to PHP 46.30 billion in 2025 from PHP 41.55 billion in 2024, its first increase after a downtrend.

The figure remains below the sector’s record of PHP 54.04 billion in 2021, which was followed by declines to PHP 53.82 billion in 2022 and PHP 49.46 billion in 2023.

“In terms of the gross value added of major industries, Services and Industry have increased in size since 2018, while [AFF] has decreased,” Dolutan said Tuesday.

Despite the decline in its economic size since 2018, AFF contributed 2.2 percentage points to the province’s 5.9 percent growth, while services added 3.7 percentage points and industry subtracted 0.01 percentage point.

AFF rebounded with 11.4 percent growth in 2025 after a stretch that ran from a 10.3 percent high in 2019 to a 16.0 percent contraction in 2024.

The services sector, despite its largest share of the economy and the biggest contribution to GDP growth, slowed to 6.2 percent growth in 2025.

This continues a downtrend from 14.0 percent in 2022 to 10.2 percent in 2023 and 7.7 percent in 2024.

The industry sector also slowed, contracting 0.1 percent in 2025 after growing 4.6 percent in 2024 and 7.0 percent in both 2023 and 2022.

Individual industries

Among individual industries, AFF made up the largest share at 19.9 percent, followed by wholesale and retail trade, including motor vehicle and motorcycle repair, at 18.6 percent.

Manufacturing accounted for 12.9 percent, while transportation and storage contributed 10.3 percent.

Financial and insurance activities made up 7.7 percent of provincial GDP, followed by education at 6.1 percent and construction at 4.9 percent.

Information and communication accounted for 4.3 percent, while public administration and defense, including compulsory social security, represented 3.9 percent.

In terms of contribution to the province’s growth, transportation and storage added 1 percentage point, while wholesale and retail trade contributed 0.7 percentage points.

Human health and social work activities posted the fastest growth among industries at 13.5 percent, followed by public administration and defense at 11.2 percent.

Education grew by 9.9 percent, while transportation and storage expanded by 9.7 percent.

Mining and quarrying contracted by 10.2 percent, while construction declined by 4.5 percent.

Accommodation and food services grew by 0.7 percent, and electricity, steam, water and waste management edged up by 0.1 percent.

Development thrusts

Mary Rose Matucan, acting head of the Iloilo Provincial Planning and Development Office, said the three key components of the provincial government’s development thrusts were aligned with the major industries.

She cited aims that included maximizing the agricultural value chain for employment and business opportunities in agricultural tourism, developing growth centers for information and communications technology, and strengthening middle-class participation in the services economy.

Matucan reiterated Gov. Arthur Defensor Jr.’s MoRProGRes Iloilo (Movement for a Robust, Progressive, Globally Competitive, and Resilient Province of Iloilo) as the anchor for the provincial government’s development direction.

“These thrusts are interconnected. Agriculture supplies the materials, industry transforms them into high-value products, and services connect producers and enterprises to markets, consumers, investors, and visitors,” Matucan said.

“We want economic progress to create meaningful opportunities for farmers, workers, entrepreneurs, families, and communities throughout the province,” she added.

She said the PPA is central to the provincial government’s decision-making, particularly in how it is responding to, and investing in, economic sectors.

Matucan said the province’s economic performance in 2025 was the result of a joint effort among the provincial government, local government units, the private sector, and local communities.

“The 2025 [PPA] [provides] encouraging evidence of economic recovery and expansion. […] We recognize that this growth [is not just a] result of the interventions of the Iloilo provincial government alone. They are [a] collective outcome of the efforts of the local government units […] down to the barangays, the national government agencies, the private sector, and the communities that we serve,” she said.

“While the GDP per capita increased, we recognize, however, that this is not enough for the province of Iloilo. […] They also remind us that each sector faces different opportunities and challenges,” she added.