Country slips in competitiveness list

THE PHILIPPINES fell two places this year in an annual competitiveness ranking as its economic performance score dragged down gains in other indicators.

The country was ranked 43rd in a list of 59, with a score of 59.271 index points, in the Geneva-based International Institute for Management Development’s (IMD) latest World Competitiveness Yearbook after being ranked 41st in 2011.

The global rankings were based on countries’ scores in four main factors.

For the Philippines, the drag came from the economic performance category, where it ranked 42nd, down significantly from 29th last year.

Improvements were noted in government efficiency, with the Philippines at 32nd from 37th, business efficiency (26th from 31st) and infrastructure (55th from 57th).

The waning in the Philippines’ attractiveness was part of trend that reflected a global economic slowdown, the report indicated.

Slow recovery in the United States — which ranked second this year after sharing the top post with Hong Kong in 2011 — “has a deep impact on the rest of the world,” the report states.

Guillermo M. Luz, private sector co-chairman of the National Competitiveness Council, said the latest ranking “generally reflected data from last year.”

“If we were to look at our performance in 2011, the two main factors that dragged down our competitiveness was weak economic growth and trade.”

The economy grew by only 3.7% last year, down significantly from 2010’s record 7.6% growth.

Mr. Luz noted, however, that “necessary adjustments have been made to address these issues,” which he claimed was reflected in the first quarter’s surprisingly strong 6.4% growth. — KAMP