Philippines climbs five notches in IMD’s world competitiveness ranking

MANILA – After dropping two steps last year, the Philippines now has climbed five notches in IMD’s 2013 World Competitiveness ranking.

According to the World Competetiveness Yearbook, the Philippines went up from 43 to 38, as investments in telecomunications, foreign direct and portfolio investments, real gross domestic growth (GDP) per capita and real GDP growth improved.

It also helped that the country’s direct investments abroad, social cohesion, image abroad or branding got better, the yearbook said.

The Philippines also benefitted from the benign consumer price inflation; shrinking government subsidies, improved scientific research, researchers and scientists; narrowing interest rate spread; and easing protectionism.

However, the Philippines has a lot of work to do as it declined in several areas of the economy:
•high-tech exports
•real short-term interest rates
•employer’s social security contribution rate
•water transportation
•government budget deficit
•relocation threats of production
•direct investments in stocks abroad
•communication technology
•current account balance
•state ownership of enterprises
•foreign investors
•employee training
•social responsibility
•investment risk
•start-up procedures

Despite these, the Philippines is still attractive to investors and the skilled Filipino workers is on top of their list of things to like about the country, IMD’s Executive Opinion Survey showed. –Likha Cuevas-Miel, InterAksyon.com