Despite gains, PHL still lagging in global competitiveness

The Philippines under the Marcos administration has maintained its secure status as among the lowest-ranked economies in the Asia-Pacific region.

This was according to the IMD World Competitive Center (WCC) which also reported a miniscule four-spot improvement for the country in its yearly survey.

In the 2026 IMD World Competitiveness Ranking, the Philippines ranked 47th  out of 70 economies with a score of 59.07 (out of 100).

This was an improvement from last year when the country ranked 51st  out of 69 with a score of 54.88.

The index measures an economy’s competitiveness landscape based on four key factors: economic performance, government efficiency, business efficiency, and infrastructure.

Even with the improved score, the Philippines remained behind its regional neighbors, ranking 13th  out of 15 Asia-Pacific economies in the index.

Singapore topped the global index with a score of 100, followed by Hong Kong (second, 95.55), Switzerland (third, 95.31), Taiwan (fourth, 94.33), and the United Arab Emirates (fifth, 94.09).

“Geopolitical conditions are worsening and global fragmentation is increasing. Nations with their own tried and tested, credible institutions gain the advantage in this context because — as the international system ceases to serve so many national needs — business can carry on as usual,” IMD WCC Director Arturo Bris said in a statement.

In the Asia-Pacific, the Philippines lagged China (ranked 12th, with a score of 84.43), Malaysia, Australia, Republic of Korea, Thailand, Vietnam, Japan, New Zealand and India.

The Philippines was only ahead of Indonesia (48th) and Mongolia.

Among those that ranked last in the index were Venezuela, Namibia, Nigeria, Mongolia, Botswana and Brazil.

At a news briefing on Wednesday, Bris said the Philippines’ overall competitiveness improved but continued to underperform in the competitiveness of the domestic economy and in attracting foreign investments.

He said the Philippines ranked lower in sub-factors like domestic economy at 37th (from 22nd last year) and international investment at 46th (from 45th last year).

“The good news for the Philippines is that institutional quality keeps on improving. That tends to be, in the long term, the best predictor of the competitiveness ranking,” he said.

“Because of the turmoil in the world economy last year, and the instability created by tariffs and other new political events, the country has suffered in what I would say is only a temporary event,”  Bris added.

According to IMD WCC, the Philippines scored 54.74 on economic performance, 47.33 on government efficiency, 60.49 on business efficiency, and 31.20 on infrastructure.

Under the economic performance indicator, the Philippines scored 57 on international trade, 46 on international investment, 37 on domestic economy, 24 in prices, and 13 in employment.

On government efficiency, the country scored 55 on institutional framework, 53 on societal framework, 48 on business legislation, 47 on public finance, and 18 on tax policy.

The Philippines obtained a score of 40 in finance, 36 on productivity and efficiency, 34 in management practices, 30 in attitudes and values, and 16 on labor market under the business efficiency indicator.

For infrastructure, the country scored 62 on education, 60 on scientific infrastructure, 59 on health and environment, 56 on basic infrastructure, and 37 on technological infrastructure.