Amid economic slowdown, Central Visayas sees growth in foreign investments

CEBU CITY, Philippines — Despite the oil crisis triggered by the US vs. Iran war, Central Visayas saw improvement in foreign investments during the first quarter of 2026.

From January to March, the region received foreign pledges totaling ₱455.27 million. It was up by roughly 35 percent from ₱336.58 million for the same period in 2025.

The growth, according to the Department of Economy, Planning, and Development in Central Visayas (DepDev-7), indicates “sustained investor confidence among foreign firms.”

READ MORE: PH semiconductor industry sees continued investment growth

“Particularly in sectors linked to business process services, energy, tourism, and manufacturing,” state economists reported in their Regional Economic Situationer Q1 2026.

The depreciation of the Philippine Peso, averaging ₱59 to ₱60 per USD, acted as a driver for foreign capital, as US dollar-denominated investments gained a higher peso-equivalent value, they added.

On the other hand, however, total investments in the region slumped by 1.33 percent for the first quarter this year.

Investment slump

Total approved investments for Central Visayas amounted to approximately ₱9.85 billion, slightly lower than the ₱9.99 billion recorded between January and March in the previous year.

A decrease in local investments has been cited as the main reason behind the decline.

“Local firms faced constraints due to the weaker peso, which increased the costs of imported raw materials and equipment, as well as debt servicing for those with US dollar-denominated loans,” DepDev-7 explained.

Likewise, high inflation and elevated electricity rates also tampered with domestic expansion and investment plans, the report added.

Meanwhile, DepDev-7 projected that investment activity in Central Visayas will face a slowdown in the succeeding quarters due to several factors, including high inflation and geopolitical tensions.

READ: Foreign investment pledges in Central Visayas slightly improve

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