Eastern Visayas Growth Slows to 1% as PASAR Shutdown Drags Economy
Tacloban City – Economic growth in Eastern Visayas sharply decelerated to 1 percent in 2025, a steep drop from the 6.2 percent expansion recorded in 2024.
Data released by the Philippine Statistics Authority (PSA) attributed the slowdown largely to a 9.6 percent contraction in manufacturing, triggered by the closure of Philippine Associated Smelting and Refining Corp..
PASAR, the country’s sole copper smelting facility based in Isabel, Leyte, ceased operations in February 2025 due to global market challenges and shortages in raw materials. The manufacturing sector, where PASAR plays a major role, made up 13.9 percent of the region’s economy.
According to Meylene Rosales, the region’s heavy reliance on PASAR highlights the need to diversify. She emphasized strengthening small businesses and expanding the range of goods and services produced locally.
The region’s economic performance was further dampened by a 2.4 percent decline in construction, linked to the suspension of several infrastructure projects following a flood control controversy, said Mae Almonte.
Meanwhile, the agriculture, forestry, and fishing sector—accounting for 11.4 percent of the regional economy—also contracted by 1.3 percent.
The services sector remained the biggest contributor, comprising 50.2 percent of the Gross Regional Domestic Product (GRDP), though its growth slowed to 5.6 percent from 7.1 percent the previous year. Gains were driven mainly by human health and social work activities, which grew by 11.4 percent, and education services, which expanded by 8.8 percent.
Despite the slowdown, Eastern Visayas’ total economic output still rose slightly, with GRDP increasing from PHP555.23 billion in 2024 to PHP560.71 billion in 2025.
GRDP reflects the total value of goods and services produced within a region and is a key indicator of economic performance.
NPO News Team | Philippine News Agency - PR
