The Philippines has experienced a decline in its global competitiveness ranking, falling four places amidst concerns over inflation, public health crises, and geopolitical issues.
The Institute of Management Development (IMD), based in Switzerland, revealed the country’s drop in its 2023 World Competitiveness Yearbook.
According to the report, the Philippines now holds the 52nd spot out of 64 economies worldwide, slipping from its 48th position in 2022.
The IMD’s annual ranking assesses how countries manage their competencies for long-term value creation, considering various factors beyond GDP and productivity, such as political, social, and cultural dimensions.
To enhance competitiveness, governments are urged to establish efficient infrastructures, institutions, and policies that foster sustainable value creation by enterprises.
The World Competitiveness Yearbook evaluates economies based on 255 criteria across four main competitiveness factors: Economic Performance, Government Efficiency, Business Efficiency, and Infrastructure.
This year’s ranking reflects the impact of global crises, including inflation, the COVID-19 pandemic, and the Ukraine conflict, according to Professor Arturo Bris, director of the World Competitiveness Centre.
The Asian Institute of Management (AIM) highlighted the challenges faced by the Philippines in 2023, including sustaining economic recovery, strengthening social protection and healthcare systems, addressing learning gaps in the education system, investing in sustainable infrastructure, and reinforcing efficient public management strategies.
The report indicates that the Philippines experienced declines in three out of the four competitiveness factors. Business Efficiency dropped from 39th to 40th, Infrastructure fell from 57th to 58th, and Government Efficiency saw the most significant decline, slipping four places to 52nd. However, there was a positive note as Economic Performance improved by 13 places, rising to 40th.
In the Asia-Pacific region, the Philippines maintained its 13th position out of 14 economies for the sixth consecutive year.
The top three most competitive economies globally were Denmark, Ireland, and Switzerland. In the Asia-Pacific region, Singapore, Taiwan, and Hong Kong secured the top three spots.
