The closure of the Philippine Associated Smelting and Refining (PASAR) Corp. facility in Leyte has had a significant impact on the overall economy of Eastern Visayas, according to state statisticians.
In a recent report, the Philippine Statistics Authority (PSA) noted that the region posted a 1 percent economic growth rate in 2025, marking a significant slowdown from the 6.2 percent boom recorded the previous year.
The Philippine Statistics Authority (PSA) reported Thursday that the sluggish growth was largely driven by a 9.6 percent contraction in the manufacturing industry following the closure of the PASAR facility in Isabel, Leyte.
PASAR, the country’s only copper smelter, shut down in February 2025 due to global market pressures and raw material shortages.
Manufacturing, which includes PASAR’s operations, accounted for a 13.9 percent share of the regional economy in 2025.
“Over the years, we have too much dependence on PASAR; we must diversify our manufacturing industry by producing other goods and services by empowering our small businesses,” Department of Planning, Economy, and Development Regional Director Meylene Rosales said.
Other factors
PSA 8 (Eastern Visayas) chief statistical specialist Mae Almonte noted that a 2.4 percent decline in the construction industry also weighed down the Gross Regional Domestic Product (GRDP).
Almonte attributed the construction dip to the suspension of several infrastructure projects in the latter half of the year amid the ongoing controversy regarding flood-control projects.
The agriculture, forestry, and fishing sector, which accounts for 11.4 percent of the regional economy, also posted a 1.3 percent decline.
The services sector remained the largest contributor at 50.2 percent of the GRDP, though its growth decelerated to 5.6 percent in 2025 compared to 7.1 percent in 2024.
Growth within the services sector was primarily supported by an 11.4 percent expansion in human health and social work activities and an 8.8 percent increase in education.
Despite the deceleration, Almonte explained that the regional GRDP still saw a slight increase in value from P555.23 billion in 2024 to P560.71 billion in 2025.
(With report from PNA)
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