Western Visayas Growth Slows to 4.3%, Among Lowest in PH

By Francis Allan L.Angelo

The economy of Western Visayas grew by just 4.3% in 2024, marking a significant slowdown and placing the region among the lowest performers nationwide, according to an analysis of Philippine Statistics Authority (PSA) data by the Institute of Contemporary Economics (ICE).

This figure represents a sharp 37% drop from the 6.8% combined growth rate recorded in 2023 for the areas currently constituting Western Visayas before the separation of Negros Occidental and Bacolod City.

In 2024, the newly formed Negros Island Region (NIR), which now includes Negros Occidental and Bacolod City, posted a stronger 5.9% economic growth during the same period.

The redefined Western Visayas region now centers heavily on Panay Island, with Iloilo and Iloilo City accounting for just over 60% of the regional economy.

ICE has flagged the slowdown as a call to action for local governments to reassess policies and interventions designed to spur growth.

“Western Visayas’ economic contraction, once adjusted for the boundary change, underscores a broader issue: weak structural foundations and mounting consumer pressure,” the ICE analysis indicated.

A key drag on growth was persistent inflation in Iloilo and Iloilo City, which exceeded the national average for the last five months of 2024.

This rise in consumer prices reduced household spending power, causing growth in household final consumption expenditure (HFCE)—which makes up 95% of GDP by expenditure—to fall from 5.4% in 2023 to just 3.3% in 2024.

Another critical issue was the region’s expanding trade imbalance.

According to trade performance data, Western Visayas posted one of the highest trade deficits in the country, with the largest total deficit reaching PHP 149.75 billion in 2024.

This shortfall reflects a heavy dependence on imports due to the lack of a strong industrial and manufacturing base and a downturn in agricultural production.

“Essentially, Western Visayas buys most of what it consumes,” the Institute’s report noted, “leaving it highly exposed to external shocks and supply chain disruptions.”

As the local economy remains largely consumption-driven and import-reliant, the current configuration of Western Visayas may struggle to achieve growth rates comparable to the national average without structural reforms.

These include boosting local production, strengthening regional supply chains, and investing in agri-industrial infrastructure.

The economic data also suggested that similar trends may appear at the provincial and city levels, with more granular GDP figures expected to be released in the last quarter of 2025.

ICE recommend that LGUs and regional development councils reexamine sectoral priorities and consider targeting inflation, trade deficits, and underdeveloped industries as key policy fronts.

The region’s performance is crucial to broader national growth goals, as outlined in the Philippine Development Plan 2023–2028, which emphasizes regional equity and competitiveness.

Without corrective action, Western Visayas could remain vulnerable to prolonged economic stagnation amid shifting regional dynamics.