Image Credit to World Economic Forum

A. Philippine Performance for the Past Five Years

Indicator*

2014 2015 2016 2017 2018

2019

No. of countries 144 140 138 137 140

141

Overall ranking

52

47 57 56 56 64

Institutions

67

77 91 94 101 87

Infrastructure

91

90 95 97 92

96

Macroeconomic stability

26

24 20 22 43

55

Health

92

86 81 82 101

102

Skills

64

63 58 55 67

39

Product market

70

80 99 103 60

52

Labor market

91

82 86 84 36

39

Financial system

49

48 48 52 39

43

ICT adoption

69 68 83 83 67

88

Market size

35 30 31 27 32

31

Business dynamism

46

42 52 58 39

44

Innovation capability

52 48 62 65 67

72

The country experienced one of the biggest drops from 56/140 in 2018 (60.0 pctl) to 64/141 in 2019 (54.6 pctl). Almost all pillars dipped in its ranks despite the Philippines maintaining its overall score of 62/100.

Decline in the pillars “technological readiness” (-14.6 pctl) and “macroeconomic environment” (-8.3 pctl) pulled down our rank, driven by the slow internet connection of the country and the effects of the protracted US-China trade war on GDP growth, respectively.

Nonetheless, there were double-digit improvements in “higher education and training” (+20.2 pctl) and “institutions” (+10.4 pctl). The passage of the Free Tuition Law in tertiary education and attainment of a high Open Budget Index score led to these improvements.

Moving forward, the government will address issues on the inadequate supply of infrastructure, delays in delivery of public services (e.g. traffic congestion), and high cost of starting a business.

B. Philippine vs. ASEAN Performance (Current vs. Past Year)

Country*

2019

Overall

Ranking

2019

Percentile Rank**

2018

Percentile

Rank***

Change in Percentile Rank

(2019 vs. 2018)

Brunei

56

60.00 55.71

-6.43

Cambodia

106

24.28 21.43

-7.11

Indonesia

50

64.28 67.86

-9.44

Lao PDR

113

19.28 20.00

-9.19

Malaysia

27 80.71 82.14

-2.51

Myanmar

N/A

N/A N/A

N/A

Philippines

64 54.28 60.00

-4.85

Singapore

1

99.28 98.57

+1.47

Thailand

40

71.43 72.86

-5.21

Vietnam

67 51.06 59.85

-8.79

* The closer to 100, the better the score.

** 141 countries were measured.

*** 140 countries were measured

Except for Singapore, the rest of the ASEAN declined in the GCI ranking for 2019. The biggest loser was Indonesia, falling behind by -9.44 notches.

The country fell further from being the 5th most competitive ASEAN economy to 6th, overtaken by Brunei.

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