The Global Competitiveness Index (GCI) measures the set of institutions, policies, and factors that determine the current productivity and potential economic growth of a country. This basically means that the higher the competitiveness of a country’s economy, the higher probability of progress throughout the succeeding years.
The index endeavors to take into account countries’ different stages of economic development, and organizes the pillars into three sub-indexes and 12 pillars, organized as follows:
- Basic requirements: Institutions, Infrastructure, Macroeconomic Stability, and Health and Primary Education;
- Efficiency enhancers: Higher Education and Training, Goods Market Efficiency, Labour Market Efficiency, Financial Market Sophistication, Technological Readiness, and Market Size; and
- Innovation and sophistication: Business Sophistication and Innovation.
The overall ranking (in percentile rank) for this index is monitored for Chapter 5.
Philippine Performance for the Past Five Years
|No. of countries||148||144||140||138||137|
|Health and primary education||96||92||86||81||82|
|Higher education and training||67||64||63||58||55|
|Goods market efficiency||82||70||80||99||103|
|Labor market efficiency||100||91||82||86||84|
|Financial market development||48||49||48||48||52|
Latest rankings show that of the 137 countries, the Philippines ranked 56 in its overall competitiveness. The ranking seems unchanged but there was a slight improvement in terms of percentile ranking (58.70 pctl vs. 59.12 pctl). For this edition, the Philippines had its highest ranking in macroeconomic environment, the 26th best in the world. Despite this significant achievement, the country should pursue reforms in improving government bureaucracy, addressing supply of infrastructure and reducing corruption – cited as the most problematic factors for doing business. It is expected that the implementation of the Ease of Doing Business and Efficient Government Service Delivery Act of 2018 (RA 11032) will further increase our rankings.
Philippine vs. ASEAN Performance (Current vs. Past Year)
|Change in Percentile Rank
(2017 vs. 2016)
* The closer to 100, the better the score.
** 137 countries were measured.
*** 138 countries were measured
Marginal movements were observed for this year’s rankings. Still at the highest rank is Singapore, but the country experienced a slight decrease. Vietnam outpaced the Philippines at an increase of 3.33 pctl compared to the country’s 0.43 pctl. This is mainly driven by its market size as well as improvements in basic requirement factors and higher education.
Frequency of update: Yearly
Publication of update: 26 September 2017
Period of study: Executive Opinion Survey held between January and June of the same year (i.e. Survey for Global Competitiveness Report for 2016-2017 was held between January and June 2016)
Link to the main site: https://www.weforum.org/reports/the-global-competitiveness-report-2017-2018
Historical data: https://www.weforum.org/