The Philippines has made a modest improvement in its standing in the World Competitiveness Ranking published in the 2025 World Competitiveness Yearbook by the International Institute for Management Development (IMD), moving up to 51st out of 69 economies from its previous position of 52nd out of 67. Despite this advancement, the country remains among the least competitive in the Asia-Pacific region, holding the 13th position out of 14 economies assessed.

Out of the five economies from the Association of Southeast Asian Nations (ASEAN) that were included in the ranking, the Philippines ranks last.

The IMD evaluates competitiveness using a total of 262 indicators categorized into four primary factors: economic performance, government efficiency, business efficiency, and infrastructure.

This year's ranking utilized 170 statistical indicators, alongside 93 perception-based indicators collected from surveys of mid- and upper-level managers across the participating countries.

The IMD aims to provide insights into how economies can maximize their unique competencies for sustainable value creation.

According to the Asian Institute of Management (AIM) Rizalino S. Navarro Policy Center for Competitiveness, which collaborates with IMD, the Philippines' improvement occurred despite facing “geopolitical concerns and other uncertainties.”

In terms of economic performance, the Philippines improved its ranking to 33rd in 2025 from 40th in 2024. This positive change was influenced by advancements in nearly all sub-factors, including domestic economic conditions, price stability, employment, and international trade.

However, the performance in international investment dipped slightly, with the ranking falling from 44th to 45th.

The previous year saw a record-high in investments for projects approved by the Philippines' leading investment promotion agencies (IPAs), amounting to ₱1.9 trillion.

Nevertheless, during the first quarter of the current year, seven of the 13 IPAs reported approved investments totaling ₱181.93 billion, which signifies a 44 percent decline compared to ₱323.27 billion in the same quarter of 2024.

In the area of business efficiency, the Philippines slipped from 46th to 43rd this year.

The decline was driven by worsening conditions in labor market factors and attitudes, offset by improvements in management practices, as well as productivity and efficiency metrics.

Regarding government efficiency, the Philippines' ranking also fell, dropping from 51st to 49th.

This decline reflects marginal enhancements in business legislation, which were eclipsed by deteriorations in tax policy, institutional frameworks, and societal elements.

In the long-standing area of infrastructure, the country saw a modest rise from 61st to 60th this year.

IMD attributes this improvement to recent advancements in basic and technological infrastructure; however, the rankings for health and environmental infrastructure, as well as scientific infrastructure, experienced declines.

The 2025 World Competitiveness Ranking lists Switzerland in the top position, followed by Singapore and Hong Kong.