The Philippines slipped to 52nd, its lowest ranking in five years, and took the sharpest decline among countries in Asia in the IMD Competitiveness Ranking 2021.
The report attributed the 7-point reduction in ranking to the fall in economic performance, government and business efficiency.
The report particularly noted the deterioration of the Philippines in several indicators related to the domestic economy, the job market, public finances and productivity of firms in the private sector.
The Philippines ranked 60th in education; 58th in the domestic economy and in scientific infrastructure and; 57th in basic infrastructure and health and science infrastructure.
“A sharp drop in its domestic economy and employment subfactors has signalled an economy suffering from the crisis as its citizens struggle to find employment from a poorer labor market of 27th position after a 17 position drop,” IMD said.
Unemployment rate rose to its highest record of 17.7 percent in April 2020 but fell to 7.1 percent in March 2021, still higher than the 5 percent pre-pandemic level in January last year.
The report said the main challenge for the Philippines now is how it can ensure inclusive economic recovery and quickly revive business and consumer confidence.
Another hurdle is how it can effectively control the new coronavirus disease epidemic and if it can a implement full vaccination rollout.
Other challenges include building resilient social infrastructure especially in health and education; sustaining increased investments in physical and digital infrastructure ad; maintaining fiscal health while adequately providing stimulus and support especially for vulnerable sectors.
According the report, the top performing Asian economies are, Singapore (5th), Hong Kong (7th), Taiwan (8th) and China (16th).
China (16th) has the sharpest rise among the Asian economies with a four-position jump, continuing the upward trajectory it has been on for a decade.
Taiwan is in the top 10 –8th – for the first time since the rankings began 33 years ago ago.
The top five ranked economies this year are Switzerland followed by Sweden, Denmark, the Netherlands and Singapore at fifth, a four-point \ drops but is the only Asian economy in the top five
Meanwhile, the Anti-Red Tape Authority (ARTA) yesterday said it is confident of an improved ranking in the World Bank Ease of Doing Business Report for this year as it pursued reforms on digitalization.
Ernesto Perez, deputy-director of ARTA, the agency submitted on June 14 its reforms to WB on the 10 indicators of the report focused mainly on digitalization.
Foremost on the reforms is via the Central Business Portal where the process of registering a business in the Securities and Exchange Commission had been cut to a day from a month and linked the system with the Bureau of Internal Revenue, Pag-IBIG Fund, Philhealth and the Social Security System that significantly reduced the requirements and steps.
Perez also cited another reform in the Land Registration Authority where certified true copies can be obtained by electronic means resulting to big savings for those transacting with the agency.
