The University of San Carlos (USC), through its School of Business and Economics (SBE) and in collaboration with the World Bank Group, hosted the Philippines Economic Update (PEU) Development Dialogues on February 23, 2026.
The forum titled “Growth corridors: Pathways out of poverty,” was held at the SAFAD Theater in USC Talamban Campus. The event brought together a diverse assembly of stakeholders, including representatives from the private sector, government agencies, civil society organizations, the academe, and students from various regional institutions.
The dialogue served as a platform for USC SBE—the only academic unit in Central Visayas holding Level III bachelor’s and Level II master’s accreditation in Economics from PAASCU—to lead critical discussions on the region’s fiscal future.
Fr. Francisco Antonio T. Estepa, SVD, Ph.D., President of the University of San Carlos, opened the proceedings by reminding attendees that while urban corridors hold immense potential as engines of commerce, they must primarily serve as “platforms for inclusion.”
“Potential is not destiny,” Fr. Estepa said, noting that sustainable growth requires deliberate choices, trusted institutions, and planning that views people as the purpose of economic growth rather than “footnotes” to it.
Irene Arzadon, an economist from the World Bank Group, presented “Closing the gaps: The role of urbanization and local service delivery for integrated development in the Philippines.” Arzadon noted that while economic convergence is underway, significant disparities persist. She emphasized that well-managed urban corridors in the Visayas can accelerate development by transitioning workers to higher-productivity jobs.
Arzadon urged local government units (LGUs) to leverage increased budgets from the Mandanas-Garcia ruling to prioritize health, education, and digital connectivity.
Offering a broader fiscal perspective, World Bank Senior Country Economist Jaffar Al-Rikabi discussed the “Philippines macroeconomic update.” Al-Rikabi presented a “gloomy” 2026 outlook following a slowdown in GDP growth to 4.4% last year, which he attributed to a collapse in public investment.
Despite low inflation of 1.7%, Al-Rikabi warned that the Philippines trails its peers in tourism recovery and expressed concern over a fiscal shift from infrastructure to operating expenses. He projected that growth could recover by 2027 if the government restores institutional credibility and manages climate risks.
The subsequent panel discussion, facilitated by Francisco M. Largo, Director of the Office of Population Studies, delved into regional specifics.
Evelyn Nacario-Castro, Assistant Regional Director of the Department of Economy, Planning, and Development Regional Office VII, highlighted Central Visayas’ 7.3% growth rate. She noted that the “Sug-Bohol” coordination via Executive Order 82 is vital for reaching single-digit poverty targets.
Virgilio “Nonoy” Espeleta, Trustee of the Cebu Chamber of Commerce and Industry, warned that Metro Cebu has reached a “breaking point” regarding water and traffic. He advocated for clustering LGUs into “shared services” hubs to eliminate administrative bloat.
Ar. Joseph Michael P. Espina of Espina, Perez-Espina and Associates, proposed a “multinodal” dispersal of growth. He suggested a “ridge-to-reef” greenbelt and electric P2P bus routes to protect watersheds while decongesting the urban core.
In his closing remarks, Julius P. Relampagos, Ph.D., Dean of the USC School of Business and Economics, called for a “four-point agenda” to transform urban corridors. Relampagos emphasized that despite national “investment headwinds,” the Visayas remain the focal point for closing welfare gaps. He acknowledged the insightful flow of the day’s panel and stressed that success depends on completing backbone connectivity and modernizing local financial management.
The Philippine Economic Update is a flagship, biannual report of the World Bank. This edition underscores that while urban corridors are vital for growth, achieving true poverty reduction requires strong institutions and effective local service delivery to ensure no region is left behind.