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Friday, Apr 03, 2026
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Philippines Ranks 51st in World Competitiveness Yearbook, Trails Asia-Pacific Peers
Although the Philippines improved its global competitiveness ranking, it remains at the bottom among Southeast Asian economies.
The Philippines has advanced one position to 51st place out of 69 economies in the latest World Competitiveness Yearbook (WCY), published by the International Institute for Management Development (IMD).
However, the country continues to be ranked 13th out of 14 economies in the Asia-Pacific region and last among five Southeast Asian nations included in the report.
The WCY, which has been published annually since 1989, assesses economies using 262 indicators categorized under four main pillars: economic performance, government efficiency, business efficiency, and infrastructure.
Of these indicators, 170 are based on statistical data from national sources, while 92 are derived from surveys of mid- and upper-level managers.
In the business efficiency category, the Philippines has seen a decline, dropping to 46th place this year from 43rd in 2024. Improvements were noted in the productivity and efficiency sub-factors as well as management practices; however, the country experienced setbacks in areas such as the labor market and broader societal attitudes and values.
Its ranking in the finance sub-factor remained unchanged.
The government efficiency pillar also saw a decrease, as the Philippines ranked 51st, down from 49th the previous year.
While the sub-factor regarding business legislation showed slight improvement, rankings worsened in other areas, including tax policy, institutional framework, and societal framework.
In terms of economic performance, the Philippines made notable progress, climbing to 33rd place from 40th in the prior year.
Despite a slight drop in the international investment sub-factor, significant improvements were observed in areas such as domestic economy, international trade, employment, and prices.
The infrastructure pillar, a key area of concern for the country, saw the Philippines move up to 60th place from 61st in 2024. The report highlights ongoing challenges faced by the Philippines, including rekindling economic dynamism, managing inflation expectations, and attracting investments in inclusive technologies.
Additional challenges include enhancing education and healthcare quality and adapting to evolving global economic and geopolitical conditions.
Switzerland retains its position as the top-ranked economy in the WCY, followed by Singapore in second place and Hong Kong in third.
However, the country continues to be ranked 13th out of 14 economies in the Asia-Pacific region and last among five Southeast Asian nations included in the report.
The WCY, which has been published annually since 1989, assesses economies using 262 indicators categorized under four main pillars: economic performance, government efficiency, business efficiency, and infrastructure.
Of these indicators, 170 are based on statistical data from national sources, while 92 are derived from surveys of mid- and upper-level managers.
In the business efficiency category, the Philippines has seen a decline, dropping to 46th place this year from 43rd in 2024. Improvements were noted in the productivity and efficiency sub-factors as well as management practices; however, the country experienced setbacks in areas such as the labor market and broader societal attitudes and values.
Its ranking in the finance sub-factor remained unchanged.
The government efficiency pillar also saw a decrease, as the Philippines ranked 51st, down from 49th the previous year.
While the sub-factor regarding business legislation showed slight improvement, rankings worsened in other areas, including tax policy, institutional framework, and societal framework.
In terms of economic performance, the Philippines made notable progress, climbing to 33rd place from 40th in the prior year.
Despite a slight drop in the international investment sub-factor, significant improvements were observed in areas such as domestic economy, international trade, employment, and prices.
The infrastructure pillar, a key area of concern for the country, saw the Philippines move up to 60th place from 61st in 2024. The report highlights ongoing challenges faced by the Philippines, including rekindling economic dynamism, managing inflation expectations, and attracting investments in inclusive technologies.
Additional challenges include enhancing education and healthcare quality and adapting to evolving global economic and geopolitical conditions.
Switzerland retains its position as the top-ranked economy in the WCY, followed by Singapore in second place and Hong Kong in third.
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