Visayas enters 2026 with cautious optimism amid global uncertainty

Cebu and the wider Visayas are entering 2026 with guarded optimism, as easing inflation and a steady recovery in domestic tourism offset weaker exports, softer foreign investment and lingering concerns over energy costs and governance, according to the private sector.

- Ehda M Dagooc Staff Member

Inflation averaged a largely benign 2.3 percent from January to November 2025, peaking at 4.1 percent in September, providing some relief to consumers and businesses alike, said the Philippine Chamber of Commerce and Industry (PCCI) national director Melanie Ng.

Domestic tourist arrivals continued to climb through the year, underpinning services activity, even as international arrivals declined.

“On balance, the fundamentals are holding, but the external environment remains challenging,” explained Ng, who also sits as the private sector representative to the Department of Trade and Industry-National SME Council for the Visayas and chairs the Economic Development Committee of the Central Visayas Regional Development Council (RDC-7).

Geopolitical tensions—particularly the reimposition of reciprocal tariffs by the US on key Asian economies—have weighed on trade and capital flows.

Investments in Central Visayas fell 62.1 percent in 2025, while exports declined 20.7 percent, reflecting softer global demand and heightened uncertainty linked to the Trump administration’s trade stance.

At home, elevated unemployment has persisted, partly due to the seasonal nature of tourism and manufacturing.