PHL moves up five places in world competitiveness ranking

After two consecutive years of declines in terms of competitiveness, the Philippines moved up in the rankings due to a brisk economy and improved government and business efficiency. 

 

The country ranked 38th out of 60 in the International Institute for Management Development’s (IMD) 2013 World Competitiveness Report, up five places from last year's 43rd out of 59 economies. 

 

Guillermo Luz, private sector co-chairman of the National Competitiveness Council, said in a statement Thursday he is “pleased” with the recent rankings.  

 

“Our goal is to move from the bottom-third of world rankings to the top-third by 2016. The 2013 report now places the Philippines in the middle-third of the list and out of the bottom-third position in prior years,” he added.

 

The IMD World Competitiveness Report reviews four major factors that include economic efficiency, government efficiency, business efficiency, and infrastructure. 

 

The Philippines saw improvements in three out of the four factors  economic performance (from 42nd to 31st), government efficiency (from 32nd to 31st), and business efficiency (from 26th to 19th).

 

Last year, gross domestic product (GDP) growth was at a revised 6.8 percent, overtaking market expectations. 

 

The government reported Thursday that the economy grew by 7.8 percent in the first quarter year-on-year, surprising economists even more. 

 

Other than stellar growth, gains in trade and stock market performance were also cited. 

 

For government efficiency, gains in fiscal policy and institutional framework (33rd, up three) offset drops in public finance and business legislation.  

 

While reform measures seem to have begun to take effect, they must be implemented with increasing urgency and scope. 

 

The 2013 World Competitiveness Yearbook echoes the results of the 2012-2013 Ease of Doing Business Report of the International Finance Corporation and World Bank in which the Philippines placed low in global rankings on starting a business and paying taxes. 

 

Luz said he “is optimistic” efforts like creation of joint private-public task force promoting and    streamlining transparency and efficiency in firms' practices will improve the ease of doing business. 

 

Improving business and investor confidence helped the jump in the country's ranking in terms of business efficiency, but infrastructure remained a drag.

 

“Increased infrastructure roll-outs and improved efficiency in the PPP (public-private partnership project) roll-outs are expected to improve performance in infrastructure,” Luz said. 

 

In a briefing Thursday, Economic chief Arsenio Balisacan said the government is doing its best to ease doing business and address investment hurdles to create much needed jobs. 

 

“We need to get the investment climate continually improving,” he said. 

 

Noting the country is “moving in the right direction,” Luz said “it is absolutely critical for us to maintain momentum and a pace of improvement that is faster than that of our major competitors.”  — VS, GMA News