MANILA — The Philippines dropped 4 places in the 2023 World Competitiveness Yearbook (WCY) based on several metrics across economic performance, government and business efficiency and infrastructure.

The Philippines fell to 52nd out of 64 economies from 48th in 2022, according to the WCY published by the International Institute of Management Development (IMD) since 1989. IMD's Philippine partner is the Asian Institute of Management Rizalino Navarro Policy Center for Competitiveness (AIM RSN PCC).

"The Philippines suffered declines in 3 out of 4 main factors or dimensions of competitiveness," the study showed.

In Asia, the Philippines is ranked 13th out of 14 economies for 6 consecutive years, it said.

The biggest decline was seen in the "government efficiency" factor, dropping to 52nd spot to 48th, the study showed. The segment analyzed efficiencies in public finance, tax policy, institutional framework, business legislation and societal framework, WYC said.

Business efficiency went down to 40th this year from 39th in 2022, while the infrastructure factor fell to 58th spot from 57th, it said.

The Philippines' economic performance, meanwhile, improved by 13 places to 40th this year from 53rd in 2022, the WCY said. This was driven by the improvements in domestic economy, employment, and prices, the study showed.

"Some of the challenges that the Philippines faces in 2023 include sustaining economic recovery and growth momentum amidst global downside risks, strengthening social protection and healthcare systems for inclusive development, addressing learning gaps to improve local education system, investing in sustainable infrastructure to reduce climate change vulnerability, and reinforcing efficient public management strategies to support fiscal responsibility," the report said.

Meanwhile, the top 3 most competitive economies in 2023 are Denmark, Ireland and Switzerland. In the Asia Pacific, the top 3 are Singapore, Taiwan and Hong Kong, according to the WCY.

According to the World Competitiveness Center, this year's results took into consideration the impact of global headwinds such as inflation, the COVID-19 pandemic and the war in Ukraine. Russia and Ukraine were excluded due to limited data reliability.

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