Philippines drops markedly in global competitiveness ranking
20 June, 2021
The Philippines slipped seven spots to rank 52 out of 64 countries listed in the 2021 World Competitiveness Report, the most recent gross annual ranking released by Switzerland-based business school International Institute for Management Development, or IMD.
It is the Philippines’ lowest ranking in five years and the steepest decline in Asia following the country’s economic performance slumped amid the COVID-19 pandemic.
The united states still lags in your community, ranking 13th out of 14 Asia-Pacific economies.
Singapore took the best spot among Asian economies at fifth place, accompanied by Hong Kong (7th), Taiwan (8th) and China (16th). At the 60th spot, Mongolia was the only Asia-Pacific economy behind the Philippines.
Within Southeast Asia, Malaysia was located 25th, up two ranks, accompanied by Thailand on spot 28, up one rank, and Indonesia on spot 37, up three ranks. Other regional countries weren't in the list.
Strengths and weaknesses
“This year’s results expose the strengths and weaknesses of the world’s economies under the litmus test of the COVID-19 pandemic and how economies which were caught most off guard with managing medical side of the pandemic were not necessarily the ones that suffered the most on an financial level,” the IMD said.
The report ranked a country’s competitiveness using indicators grouped under four factors: economical performance, government efficiency, business efficiency and infrastructure.
The Philippines’ performance declined after the economy slumped by an archive 9.6 % this past year, the IMD noted. The country implemented among the world’s longest and strictest lockdowns, leaving many unemployed and businesses struggling to survive.
High unemployment, poor economy
“[The Philippine] economical performance fell the hardest because of its poor domestic economy, international investment and employment which saw unemployment rates double from around five % to a lot more than ten per cent. It has also suffered in its public finances and productivity of businesses in the private sector,” the report said.
Based on the IMD, the Philippine rankings dropped in three sectors, namely financial performance, government efficiency and business efficiency because of poorer performance in productivity, labour market, finance and management practices.
The united states retained its poor infrastructure ranking at 59th for a third straight year, regardless of the government’s massive “Build, Build, Build” public infrastructure spending programme.
Switzerland took the very best ranking overall in this year’s World Competitiveness Index, accompanied by Sweden, Denmark, and holland.
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