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In 2023, Iloilo City’s gross domestic product (GDP) grew by 10.5 percent with a value of P160.28 billion, compared to P145.07 billion in 2022, positioning the city as the fastest-growing economy in Western Visayas. The city also recorded the highest per capita GDP amounting to P337,805, among all provinces and highly urbanized cities (HUCs) in Visayas.

 Wholesale and retail trade was the main contributor that fueled the city’s GDP growth at 2.3 percent, followed by accommodation and food service at 1.7 percent, and financial and insurance activities at 1.2 percent. Accommodation and food service grew the fastest at 48.3 percent, followed by other services at 28 percent, and transportation and storage at 18.9 percent.

The city government was recognized as the top-performing HUC in Western Visayas for exceeding its 2023 revenue collection target by collecting P2.43 billion in locally sourced revenues, achieving 113 percent collection efficiency. The Bureau of Local Government Finance (BLGF) revenue target was P2.144 billion. The revenue came from real property taxes at P1.178 billion, business taxes at P981.13 million, fees and charges at P190.20 million, and economic enterprises income at P86.09 million.

With Iloilo’s average annual income of P478,730, family incomes in the city also grew, according to the 2023 Family Income and Expenditure Survey of the Philippine Statistics Authority.

 Growth drivers

 With a vision of Iloilo becoming a business hub, the city is poised to reach greater heights of development as residential investments and commercial activities continue to rise in the local economy. It remains the primary site for both vertical and horizontal residential projects by national developers, and for outsourcing companies that are expanding outside of Metro Manila. The high demand for office space will also lead to sustained take-up for condominium units.

 In his statement on the Iloilo city government's Facebook account, Mayor Jerry Treñas announced several proposed incentives, reinforcing the city’s commitment to develop Iloilo city as “a premier investment destination, fostering a thriving business environment, and generating more opportunities for our people."

 These include granting real property tax incentives for developers constructing buildings exclusively for business process outsourcing (BPO) operations, and updating investment incentives for key development areas. These will cover strategic locations such as the entire stretch of Corazon Aquino Avenue, Coastal Road, the entire stretch of the radial road, Sen. Benigno Aquino Jr. Avenue, the entire length of Iloilo Sunset Boulevard, and Pison Avenue. 

 These initiatives are expected to attract more investments, drive economic growth, and create employment opportunities in the city,” said Mayor Treñas.

 Boosting the demand in the property market are the infrastructure projects such as the Panay Railway, Iloilo-Capiz Aklan Expressway, Iloilo-Sta. Barbara Bus Rapid Transit, and Iloilo International Aiport. Investments are also coming in due to the presence of a young workforce, affordable cost of living, and robust retail market.

 As a UNESCO Creative City of Gastronomy, Iloilo City is banking on cultural and tourism activities to bring in more revenue. The local gastronomy sector, recognized for its role in urban development, employs an estimated 4,600 people, comprising over 300 restaurants.

 From P40 million in 2024, the city government has allotted a P50-million budget to fund various festivals that have grown in scale from the past years. This year’s higher allocation will be coursed through the Iloilo Festival Foundation, Inc. to support the Dinagyang Festival and other major festivals such as the Paraw Regatta Festival, Festival of Food, Bike Festival, and Art Festival.