The Philippines slipped four places in the 2023 World Competitiveness Yearbook (WCY) to 52nd out of 64 countries amid uncertainties.
The Philippines dropped from 48th in 2022.
For six straight years, the country also languished in 13th place out of the 14 counties in Asia-Pacific.
Already hobbled by global inflation, public health crises, geopolitical concerns and other uncertainties, the Philippines will continue to face challenges this year, the report said.
These challenges include sustaining economic recovery and growth momentum amidst global downside risks, strengthening social protection and health care 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 the Philippines suffered declines in three out of the four main factors of competitiveness.
The biggest decline was recorded in the government efficiency factor, a four-place drop from 48th in 2022 to 52nd in 2023.
The report said all the sub-factors under government efficiency declined: public finance, from 51st to 55th; tax policy, 13th to 14th; institutional framework, 53rd to 56th; business legislation, 52nd to 57th and; societal framework, 50th to 53rd.
In business efficiency, the Philippines dropped from 40th in 2022 to 39th.
In infrastructure, a perennial challenge, the Philippines dropped from 57th in 2022 to 58th in 2023.
The Philippines’ economic performance factor improved by 13 places from 53rd in 2022 to 40th in 2023 with these sub-factors registering improvements: domestic economy, employment and prices
The top three most competitive economies in the 2023 WCY rankings are Denmark, Ireland and Switzerland In Asia-Pacific, the top three most competitive economies are Singapore (4th), Taiwan (6th), and Hong Kong (7th).
