2018Governance Indicator

Global Competitiveness Index

Indicator Overview

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

Indicator 2013 2014 2015 2016 2017
No. of countries 148 144 140 138 137
Overall ranking 59 52 47 57 56
Institutions 79 67 77 91 94
Infrastructure 96 91 90 95 97
Macroeconomic environment 40 26 24 20 22
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
Technological readiness 77 69 68 83 83
Market size 33 35 30 31 27
Business sophistication 49 46 42 52 58
Innovation 69 52 48 62 65

 

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)

Country* 2017

Overall

Ranking

2017

Percentile Rank**

2016

Percentile

Rank***

Change in Percentile Rank

(2017 vs. 2016)

Brunei 46 66.42 N/A N/A
Cambodia 94 31.39 35.51 -4.12
Indonesia 36 73.72 70.29 +3.43
Lao PDR 98 28.47 32.61 -4.14
Malaysia 23 83.21 81.88 +1.33
Myanmar N/A N/A N/A N/A
Philippines 56 59.12 58.70 +0.43
Singapore 3 97.81 98.55 -0.74
Thailand 32 76.64 75.36 +1.28
Vietnam 55 59.85 56.52 +3.33

* 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.

Further Informaation

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/