CEBU, Philippines - Business confidence in Central Visayas had been upbeat in the second quarter of 2017, the Bangko Sentral ng Pilipinas said, as it sees a bright business outlook in the region for the rest of the year.
Rosabel Guerrero, director of BSP's Department of Economic Statistics, said that business outlook for the region remains robust.
Likewise, she said employment outlook remains favorable and the number of companies with expansion plans is expected to increase this quarter.
"Business confidence is less favorable for Regions 6 (Western Visayas) and 8 (Eastern Visayas) while more upbeat for Region 7 (Central Visayas) for second quarter of 2017," she said in a presentation during a BSP event in Cebu City on Tuesday.
"Positive employment prospects are expected in Western Visayas and Central Visayas but negative for Eastern Visayas," Guerrero said.
Unemployment and underemployment rates broadly rose in Visayas in April 2017.
She also said that overall, increasing financial resources and stable inflation support sustained economic growth in Visayas for 2017 but efforts focused on job creation and provision of more loans could help accelerate economic growth and improve the living conditions of the jobless and small businesses.
Population in Visayas is growing at a slower rate compared to the national average.
Meanwhile, Central Visayas’ population recorded the highest growth in Visayas and was also above the national growth.
Visayas’ economy expanded at a quicker pace by 8.5 percent in 2016; Central Visayas economy grew by 8.8 percent.
Financial resources continued to expand — more banks and more loans granted by banks in first quarter of 2017 and 2016, respectively, compared to a year ago – across all regions of Visayas.
Data from the Bangko Sentral ng Pilipinas showed the total number of bank branches in Central Visayas region as of March 2017 reached 636, up from 622 as of March 2016.
Furthermore, based on data from the Philippine Deposit Insurance Corp. (PDIC), bank deposits in Central Visayas as of end 2016 reached P552.05 billion, up by 11 percent from P499.33 billion in 2015.
Bank deposits in Cebu, the region's financial center, as of end 2016 stood at P468.36 billion, up 10 percent from P425.78 in 2015.
Aside from economic expansion, the increasing population is also driving the banking sector's growth. The increasing employment, robust consumer spending and household expenditure as among the drivers of the sector's growth.
Cebu's vibrant and growing economy which is mostly consumer-driven is also supporting this growth.
Cebu is seen to sustain this growth considering the consistent rise in bank deposits in the last years. (FREEMAN)