ILOILO City — Western Visayas emerged as the Philippines’ fastest-growing regional economy in 2025 while nearly halving its poverty incidence among families, signaling that the region’s P683.44-billion economic expansion is increasingly translating into improved living conditions.
The region posted a 6.4-percent economic growth rate, the highest among the country’s regions, while poverty incidence dropped sharply to 5.2 percent in 2025 from 9.8 percent in 2023, according to data from the Philippine Statistics Authority (PSA) highlighted by the Department of Economy, Planning, and Development (DEPDev) Region 6.
The performance also cemented Western Visayas’ position as the eighth-largest regional economy in the country despite the creation of the Negros Island Region.
DEPDev-6 regional director Engr. Arecio Casing said the combination of rapid economic expansion and declining poverty is a critical indicator that growth is reaching sectors beyond major business centers.
“Our poverty decreased coupled with high growth — that is what we want to see,” Casing said.
“We don’t want to see a region with high growth but very high poverty. This shows our growth is reaching the lowest levels of our sector,” he stressed.
Joyalita Tigres, chief economic development specialist of DEPDev-6’s Planning Policy Formulation and Planning Division, said poverty measurement also considers factors beyond household income.
“This is not only income-based; the PSA considers multidimensional factors like access to basic health, education, and social indicators,” Tigres explained, adding that Western Visayas outperformed neighboring Visayas regions in improving living standards.
DEPDev-6 officials credited frontline government agencies, including the Department of Social Welfare and Development and Department of Health, for expanding social safety nets and essential services.
SERVICES POWER GROWTH
The services sector remained the backbone of the Western Visayas economy, accounting for 66.5 percent of its total output.
Its gross value added climbed from P427.29 billion in 2024 to P454.19 billion in 2025, propelled by tourism, the information technology-business process outsourcing industry and other service activities.
Iloilo City and Capiz continue to sustain the region’s Information Technology – Business Process Outsourcing (IT-BPO) momentum even after Negros was separated from Western Visayas to form the Negros Island Region.
DEPDev-6 also cited efforts to prepare the region’s workforce for emerging technologies through programs such as the Department of Science and Technology’s AI (Artificial Intelligence) Fest and various startup initiatives.
“What we really want is an elevated workforce capable of competing not just with other regions, but with global economies,” Casing stressed.
Tourism also remains a major economic pillar, anchored on destinations such as Boracay, Northern Iloilo, Guimaras and Iloilo City, a UNESCO Creative City of Gastronomy.
Transport improvements, wider digital access, energy connectivity and investments in climate resilience have likewise helped sustain the region’s economic momentum.
GROWTH GAPS REMAIN
Despite the strong economic numbers, DEPDev-6 acknowledged that significant development gaps remain, particularly in geographically isolated and disadvantaged areas.
Poverty and inequality continue to affect vulnerable communities, while agriculture remains exposed to climate risks, weather disturbances, food-security concerns and nutrition problems.
Infrastructure deficiencies and human-capital constraints also remain structural obstacles to sustaining the region’s growth.
DEPDev-6 said its recalibrated 2025-2028 development priorities will therefore focus on agricultural transformation and food security, accelerated poverty reduction and social protection, and the creation of quality jobs and livelihoods.
The regional strategy also calls for expanded infrastructure, greater investment and business development, digital transformation and innovation, stronger climate and disaster resilience, and improved governance.
The PSA is expected to release a more detailed provincial breakdown of Western Visayas’ 2025 economic and poverty performance in a subsequent report./PN
