Philippines improves to 51st in competitiveness, but still lags behind in Asia-Pacific

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June 17, 2025 | 6:00am

MANILA, Philippines — The Philippines saw its ranking move up one notch to 51st place out of 69 economies in this year’s World Competitiveness Yearbook (WCY) released by the International Institute for Management Development (IMD), but the country continued to lag behind its peers in Asia-Pacific.

This year’s edition of the WCY showed that the Philippines placed 13th out of 14 economies in Asia-Pacific.

The Philippines also ranked last out of the five Southeast Asian economies included in the report.

Published by the IMD since 1989, the WCY ranks economies using 262 indicators spread in four competitiveness factors or pillars: economic performance, government efficiency, business efficiency and infrastructure.

Out of 262 indicators, 170 are based on statistical data gathered from national sources, while the remaining 92 are derived from a survey covering mid- and upper-level managers.

In the business efficiency pillar, the Philippines continued to decline to 46th place this year from 43rd in 2024.

While the Philippines’ ranking in the productivity and efficiency and management practices sub-factors improved this year from a year ago, the country’s ranking dropped in other sub-factors such as labor market and attitudes and values.

Meanwhile, its ranking was unchanged in the finance sub-factor.

The Philippines’ ranking also declined in the government efficiency pillar to 51st place this year from 49th last year.

While the business legislation sub-factor saw a marginal improvement in ranking, the country’s ranking worsened in other sub-factors like tax policy, institutional framework and societal framework.

In terms of the economic performance pillar, the Philippines climbed to 33rd place this year from 40th in 2024.

While the Philippines posted a marginal drop in the international investment sub-factor, it saw improvements in rankings in other sub-factors like prices, domestic economy, international trade and employment.

As for the infrastructure pillar, which has been a perennial challenge for the country, the Philippines’ ranking moved up to 60th this year from 61st in 2024.

According to the report, the country continues to face challenges in terms of rekindling the country’s economic dynamism and growth trajectory, addressing inflation expectations, as well as in promoting investments in inclusive technology.

Other challenges cited were in terms of improving education and health care as well as adapting to changing global economic and geo-political dynamics.

Overall, Switzerland topped this year’s WCY, followed by Singapore and Hong Kong.