PH climbs four spots in competitiveness list
The Manila Times
THE Philippines has gained four places in a global competitiveness ranking, reflecting improved perceptions of the country’s ability to foster a business-friendly environment despite lingering concerns over supply chain disruptions and exchange-rate volatility.
The country ranked 47th out of 70 economies this year, up from 51st in 2025, according to the latest World Competitiveness Yearbook released by the Switzerland-based International Institute for Management Development (IMD).
The improvement allowed the Philippines to retain its position as the 10th most competitive economy among countries with gross domestic product (GDP) per capita below $20,000.
The annual ranking assesses economies based on their capacity to create and maintain an environment that sustains the competitiveness of enterprises. It evaluates countries using four broad factors: economic performance, government efficiency, business efficiency, and infrastructure.
“I’ve seen improvements in institutional quality of the country based both on government and business efficiency,” World Competitiveness Center Director Arturo Bris told The Manila Times late on Wednesday.
“The country’s performance in the economic performance factor is the one that marks the country’s performance in the overall ranking,” he added.
Singapore returned to the top of the competitiveness rankings in 2026 after placing second last year, helped by a sharp improvement in business efficiency that propelled it to first place globally.
Hong Kong climbed to second place, extending its steady rise over the past three years and reinforcing the strong presence of Asian economies at the top of the list.
Switzerland slipped to third from first in 2025 after a decline in economic performance, one of the ranking’s four key factors, falling 24 spots to 37th.
Meanwhile, Taiwan rose two places to fourth, continuing its upward trend from eighth in 2024 and sixth in 2025. The United Arab Emirates remained in fifth place.
The Philippines, meanwhile, remained 13th out of 15 economies in Asia-Pacific region.
The country’s improved standing came against the backdrop of an increasingly fragmented global economy marked by geopolitical tensions, supply chain realignments and heightened uncertainty.
The IMD said competitiveness in today’s environment extends beyond traditional indicators such as market size, low labor costs and growth prospects.
Instead, institutional credibility, regulatory predictability and governments’ ability to respond to shocks have become increasingly important determinants of investor confidence.
“I think 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,” Bris said.
“Because of the turmoil in the world economy last year and the stability created by tariffs and other geopolitical events, the country has suffered, in which I would say it’s only a temporary event,” he added.
But despite the country’s improved ranking, Filipino executives continued to identify several risks that could undermine confidence and future competitiveness gains.
About 67.4 percent of the executives surveyed cited supply chain disruptions as a major factor affecting business confidence. Meanwhile, 69.8 percent pointed to exchange-rate volatility as a significant concern, underscoring the vulnerability of businesses to external shocks and fluctuations in global financial markets.
The IMD identified several challenges the Philippines needed to address this year, including sustaining economic growth while keeping inflation in check amid external shocks.
It also stressed the need to improve government efficiency and reduce corruption risks, ensure quick responses to energy and food supply disruptions, address issues affecting access to and the quality of basic education and encourage investments in renewable energy and climate resilience.
