CEBU, Philippines — Cebu starts 2025 in a favorable position, building on a strong economic foundation that includes continued GDP growth and a steady post-pandemic recovery.
The province’s thriving tourism, manufacturing, real estate and IT and business process management (IT-BPM) sectors have buoyed Cebu’s economy, generated employment opportunities and boosted local businesses.
In 2023, Cebu Island's economy reached a significant milestone, hitting the trillion-peso mark with a GDP of P1.01 trillion. This represents the combined economies of Cebu Province and the highly urbanized cities of Cebu, Mandaue and Lapu-Lapu, which together contributed 73% to the Central Visayas GDP, according to data from the Philippine Statistics Authority.
Cebu business leaders share the same sentiment about the province’s economic performance. For Jay Yuvallos, president of the Cebu Chamber of Commerce and Industry, Cebu’s economy “did very well in 2024.”
Lapu-Lapu City (9.4%), Cebu City (8.3%), and Mandaue City (7.6%) all exceeded the 7.3% regional growth rate of Central Visayas.
“These figures underscore Cebu’s resilience despite ongoing challenges,” he said. “In any given time, good or bad, there are always winners and losers. But the general sentiment is that we have recovered.”
Mark Anthony Ynoc, president of the Mandaue Chamber of Commerce and Industry, takes a more optimistic view. “We are hoping 2025 to be far better than last year,” he said. “I believe this year would be way better, since the pandemic.”
Former MCCI president Steven Yu pointed to Cebu's resilient trade sector and moderating inflation as factors contributing to “positive improvements in the daily lives of the general population.”
Top-notch social services
With a population of 1.04 million, Cebu City is one of the wealthiest cities in the Philippines, along with the cities of Lapu-Lapu and Mandaue. It is also a regional hub for tourism and economic activities.
“Cebu remains as one of the most attractive and largest residential hubs outside of Metro Manila,” Colliers Philippines stated.
The province is also home to some of the country's most reputable schools, which produce skilled graduates entering the local workforce. In 2024, EduRank named the University of San Carlos seventh among the 100 best universities in the Philippines.
In terms of healthcare, Cebu has a network of health facilities, including over 30 government and private hospitals regulated by the Department of Health.
Cebu City aims to become a “smart city” and harness digital innovation to improve its transportation system, disaster preparedness and recovery, and government services. In fact, the city government has adopted Google Cloud Platform and Google Workspace to deliver public services.
However, sustained progress in education, healthcare and smart city ambitions hinges on reliable infrastructure, particularly energy investments. A stable power supply is vital for powering advanced medical equipment, digital learning platforms, and the technology underpinning smart city initiatives.
Energy supply critical to responsive social services
The Cebu Electricity Rights Advocates has urged immediate investment in local power plants to reduce reliance on external sources. The group warned that power outages could disrupt essential services like water and transportation, threaten hospital operations, and harm tourism.
At a business forum, Cebu Governor Gwendolyn Garcia said, “If we are to even be able to match the phenomenal growth that Cebu is experiencing right now, we would have to be very serious about generating more [power] capacity.”
A study from the Philippine Institute for Development Studies highlights the long-lasting effects of frequent power outages on local government revenues and the provision of vital services. It notes that electricity interruption could lower business tax and real estate tax collections over time.
According to the PIDS study, “It likewise causes a contraction in local government expenditure related to housing and community development, and labor and employment, depriving the local population of around P3.8 billion worth of undelivered public services.”
A burgeoning population–Metro Cebu’s population is projected to increase to 3.8 million by 2030–will also put pressure on the province’s energy supply.
Meeting high energy demand
With power outages having ripple effects beyond economic losses, the need for a reliable, 24/7 power supply is critical.
For starters, projected increases in peak electricity demand in the Visayas need proactive solutions to ensure energy security. Cebu's power demand already exceeds the national average year-on-year, even as the Philippine Energy Plan projects a significant rise in peak demand for the Visayas region, from 2,464 megawatts in 2023 to 10,678 megawatts by 2050.
Last year in May, Cebu's peak demand hit 1,223 megawatts, exceeding its total plant capacity of 1,123 megawatts, based on data from the National Grid Corporation of the Philippines.
Energy Assistant Secretary Mario Marasigan said Cebu is unlikely to face power issues in the next two years but stressed that it must have new power generation projects to ensure a long-term, self-sustaining energy supply.
Some measures can be done as early as now, such as ensuring a balanced mix of traditional and renewable energy sources to ensure stable and affordable electricity. Baseload power plants, for one, can ensure grid stability when energy from renewables fluctuates.
For instance, AboitizPower is upgrading its 340-megawatt Therma Visayas baseload power plant in Toledo, Cebu, to a smart power plant. The goal is to lower the cost of power generation by ensuring plant operations are more efficient and effective. More importantly, the project is expected to add 150MW to address Cebu’s growing power demand.
Renewable energy projects are also underway, such as the development of solar farms in Daanbantayan, Dumanjug and Toledo.
To sustain its economic momentum and ensure the uninterrupted delivery of vital social services for its growing population, Cebu must prioritize ongoing energy investments. By proactively shaping its power landscape, Cebu can position itself as a model of energy innovation and secure a brighter future for its citizens.
Editor’s Note: This press release is published by the Advertising Content Team that is independent from our Editorial Newsroom.