Slow down in investment activities in Central Visayas expected

CEBU CITY, Philippines – High inflation and the unpredictability of the US vs. Iran war will continue to weigh down investments for Central Visayas.

Investment activity in the region is expected to slow down in the succeeding quarters, the Department of Economy, Planning and Development here (DepDev-7) reported in its Regional Economic Situationer for the first quarter this year.

“Investment activity in Central Visayas is expected to slow due to heightened business uncertainty arising from global geopolitical tensions, elevated inflation, and higher operating costs,” the report stated.

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That’s why regional leaders have been pushing to sustain investment momentum through several ongoing initiatives.

Investors cautious

Persistent high inflation has pushed many investors into a “wait-and-see” stance as they wait for further policy rate adjustments from the Bangko Sentral ng Pilipinas, according to DepDev-7.

Likewise, rising electricity rates and the continued depreciation of the peso are also expected to temper expansion plans across the region.

While a weaker peso can attract foreign capital, economists noted that it likewise raises debt-servicing costs for firms with foreign-currency loans and drives up the price of imported equipment and raw materials.

The US-Israel vs. Iran conflict has added another layer of business uncertainty, contributing to higher logistics and production expenses, DepDev 7 added.

The possibility of further interest rate hikes is also making investors more cautious about pursuing large-scale, capital-intensive activities, particularly in the construction sector.

Stakeholders here — both from the private and public sectors — have been taking steps to keep economic activities in Central Visayas alive.

These include conducting trade missions overseas to promote the region to prospective investors.

The Regional Development Council here (RDC) 7 and members of the Cebu Chamber of Commerce and Industry (CCCI) recently went to Japan to pitch Central Visayas.

In Bohol, provincial officials have held talks with the Philippine Economic Zone Authority (PEZA) on a proposed mixed-use economic zone aimed at drawing more businesses to the province.

Sectors remain resilient

Central Visayas continues to hold the highest level of approved investments outside the greater Metro Manila, DepDev 7 said.

Foreign investors have also sustained their confidence in the region’s manufacturing, energy, tourism, and business process sectors, with foreign approved investments growing by more than 35 percent in the first quarter of 2026.

The report added that the manufacturing sector may get a further boost in external demand following a recent U.S. Supreme Court ruling that limited certain global tariffs, a development that could support employment and expansion in the region’s export-oriented industries.

While the near-term outlook points to a moderation in investment activity, DepDev 7 said the combination of ongoing promotional efforts, infrastructure initiatives, and sectoral resilience is expected to help cushion the impact of external pressures on the region’s investment climate in the coming quarters.

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