Cebu enters 2025 on solid economic footing, driven by continued GDP growth and a strong post-pandemic recovery. The province’s thriving tourism, manufacturing, real estate, and IT-BPM sectors have fueled job creation and supported local businesses.
In 2023, Cebu’s economy surpassed the trillion-peso mark, reaching a GDP of P1.01 trillion. This milestone reflects the combined contributions of Cebu Province and the highly urbanized cities of Cebu, Mandaue, and Lapu-Lapu, which collectively accounted for 73% of Central Visayas’ GDP, according to the Philippine Statistics Authority.
Business leaders share an optimistic outlook. Jay Yuvallos, president of the Cebu Chamber of Commerce and Industry, noted that Cebu’s economy “performed very well in 2024.” Growth rates in Lapu-Lapu City (9.4%), Cebu City (8.3%), and Mandaue City (7.6%) all exceeded Central Visayas’ regional average of 7.3%.
“These figures underscore Cebu’s resilience despite ongoing challenges,” Yuvallos said. “In any period, good or bad, there are winners and losers. But the overall sentiment is that we have recovered.”
Mark Anthony Ynoc, president of the Mandaue Chamber of Commerce and Industry, expects even stronger performance in 2025. “We anticipate a much better year ahead, the best since the pandemic,” he said.
Former MCCI president Steven Yu highlighted Cebu’s resilient trade sector and moderating inflation as key contributors to improving daily life for residents.
Strengthening Social Services
With a population of 1.04 million, Cebu City ranks among the wealthiest in the Philippines, alongside Lapu-Lapu and Mandaue. It also serves as a regional hub for tourism and commerce.
According to Colliers Philippines, Cebu remains one of the most attractive residential hubs outside Metro Manila. The province is home to reputable universities, including the University of San Carlos, which ranked seventh among the country’s top 100 institutions in 2024, according to EduRank.
Cebu’s healthcare infrastructure is equally robust, featuring over 30 government and private hospitals.
As part of its vision to become a “smart city,” Cebu City is leveraging digital innovation to enhance transportation, disaster preparedness, and public services. The city has adopted Google Cloud Platform (GCP) and Google Workspace to streamline governance.
However, sustaining progress in education, healthcare, and smart city initiatives depends on reliable infrastructure—particularly energy investments. A stable power supply is essential for advanced medical equipment, digital learning platforms, and smart city technologies.
Energy Security: A Critical Priority
The Cebu Electricity Rights Advocates (CERA) has called for immediate investment in local power plants to reduce reliance on external sources. The group warned that power outages could disrupt essential services, including water supply, transportation, and hospital operations, while also impacting tourism.
Cebu Governor Gwendolyn Garcia echoed this urgency at a business forum: “To match Cebu’s phenomenal growth, we must be serious about expanding our power capacity.”
A study by the Philippine Institute for Development Studies (PIDS) highlights the economic consequences of frequent power outages, warning that electricity disruptions could reduce business tax and real estate revenues, ultimately limiting public services. The report estimates that power interruptions could deprive local communities of PHP3.8 billion worth of essential services.
With Metro Cebu’s population projected to reach 3.8 million by 2030, energy demand will continue to rise, making proactive investments in power infrastructure critical.
Meeting Cebu’s Growing Energy Needs
Power outages extend beyond economic losses, affecting daily life and business operations. Addressing Cebu’s rising energy demand requires immediate action.
Cebu’s power consumption already exceeds the national average. The Philippine Energy Plan projects peak demand in the Visayas to rise from 2,464 megawatts in 2023 to 10,678 megawatts by 2050. In May 2024, Cebu’s peak demand hit 1,223 megawatts—exceeding its total plant capacity of 1,123 megawatts, according to the National Grid Corporation of the Philippines (NGCP).
While Department of Energy Assistant Secretary Mario Marasigan assured that Cebu is unlikely to face immediate power shortages, he emphasized the need for new power generation projects to ensure long-term energy security.
One solution is a balanced mix of traditional and renewable energy sources to ensure stable and affordable electricity. Baseload power plants, for instance, provide grid stability when renewable energy output fluctuates.
AboitizPower is addressing this challenge by upgrading its 340-megawatt Therma Visayas (TVI) baseload power plant in Toledo into a smart power facility. The upgrade aims to enhance operational efficiency and add 150 megawatts to Cebu’s power supply.
Additionally, renewable energy projects, such as solar farms in Daanbantayan, Dumanjug, and Toledo, are underway.
Powering Cebu’s Future
To sustain its economic momentum and deliver essential social services, Cebu must prioritize energy investments. By proactively shaping its power infrastructure, the province can secure a stable energy future, drive continued growth, and enhance the quality of life for its residents.
