CEBU CITY — Cebu province’s economy expanded by 2.7% in 2025 to reach P453.76 billion, primarily driven by the robust performance of the services sector. The Philippine Statistics Authority (PSA) reported these figures during a recent forum at the Cebu Provincial Capitol Social Hall.
Services Sector Leads the Charge
The services sector expanded by 5.0% to reach P289.16 billion, contributing 3.1 percentage points to overall provincial growth. Although this growth is slower than the 8.0% recorded in 2024, it remains the dominant economic driver for the province.
Human health and social work activities spearheaded this growth with an 11.8% increase. Public administration and defense grew by 11.3%, while financial and insurance activities posted a strong 9.6% expansion, indicating a deepening reliance on service-oriented industries.
Industry and Agriculture Contract
Despite the services boom, the industry sector contracted by 0.6% to P128.31 billion, a stark reversal from its 7.9% growth the previous year. This slowdown reflects broader economic adjustments and potential challenges in manufacturing and construction.
Agriculture, forestry, and fishing also experienced a 2.7% decline, settling at P36.29 billion. The contraction in these traditional sectors highlights the province's ongoing economic transition, shifting reliance toward trade, finance, and professional services for sustained growth.
Urban Wealth Concentration Drives Property Demand
Wholesale and retail trade, including motor vehicle repair, contributed the most to growth at 0.9 percentage points, capturing a 15.6% share of the local economy. This surge correlates directly with rising consumer spending and an expanding commercial landscape.
Cebu City emerged as the region's fastest-growing area, posting 5.8% growth and the highest per capita GDP at P365,037. This stark contrast to the province's P126,961 average underscores a massive concentration of wealth and commercial activity, fueling strong demand for urban real estate.
Data to Guide Local Planning
The PSA released these 2025 Provincial Product Accounts to assist local governments and development partners in evidence-based planning. National Statistician Claire Dennis Mapa urged agencies to integrate this data with local frameworks to design programs addressing community needs.
For real estate stakeholders, the data suggests a strategic pivot toward service-oriented hubs. As the province relies heavily on health, finance, and public administration, developers should prioritize residential and commercial projects catering to the growing workforce in these high-growth corridors.
By aligning property investments with the booming services sector, Cebu can attract further capital. The continued growth of financial and healthcare industries will require specialized facilities, offering a clear roadmap for future commercial and residential developments.
