Philippines drops the most in Asia in competitiveness ranking

MANILA, Philippines — The Philippine economy experienced the most significant decline in the region in terms of competitiveness dragged by “worsening” tourism, employment and public finances, as well as concerns about the country’s education system.

The country fell nine notches to 50th spot out of 63 economies tracked in this year’s World Competitiveness Ranking published by Switzerland-based business school International Institute for Management Development.

The Philippines also slipped to 13th place from its 11th ranking in 2017 among 14 Asia-Pacific nations.

Across sub-factors, the country’s rank dropped in terms of economic performance, government efficiency, business efficiency and infrastructure.

In 2018, IMD said among the key “challenges” for the Philippines are investing in quality infrastructure, increasing investment in human capital particularly on health and education, and strengthening institutions.

IMD also pointed out that the Southeast Asian nation struggles with increasing digital competitiveness and mitigating political risks.

“I think that the Philippines has been booming as a country where large multinationals can bring their global services like [information technology] or [human resources],” Arturo Bris, director of the IMD World Competitiveness Center, was quoted as saying in a report by BusinessWorld.

“But compared to other countries like Indonesia and specifically Vietnam, it is lacking appeal for foreign investors when it comes to establishing plans and operations there,” Bris added.

The United States returns to the first spot, followed by Hong Kong, Singapore, the Netherlands and Switzerland.

According to IMD, the return of the US to the top was driven by its strength in economic performance and infrastructure.

“This year’s results reinforce a crucial trait of the competitiveness landscape. Countries undertake different paths towards competitiveness transformation,” Bris said in a statement.