The Philippines improved its standing in the IMD World Competitiveness Ranking 2025, rising to 51st out of 69 economies. The report, released by the Swiss-based International Institute for Management Development (IMD), assesses how countries support productivity, economic growth, and business competitiveness.
Despite the slight progress, the Philippines remains among the lower-ranked economies in the Asia-Pacific, placing 13th out of 14 in the region. It also ranked last among the five ASEAN economies included in the list. Globally, Switzerland, Singapore, and Hong Kong secured the top three spots, with Singapore continuing to lead the region.
Gains in Economic Performance, Declines in Other Areas
The Philippines showed mixed results across the competitiveness pillars. A key highlight was its improvement in Economic Performance, where it moved up from 40th in 2024 to 33rd this year. The most significant gain came from the prices sub-factor, which jumped nine places to 39th. The domestic economy, international trade, and employment indicators also showed positive movement.
However, other areas dragged down the country’s overall standing. The Business Efficiency pillar dropped from 43rd to 46th, as labor market conditions and societal attitudes weakened. Improvements in productivity, efficiency, and management practices helped cushion the decline, but not enough to lift the entire category.
Meanwhile, Government Efficiency slipped from 49th to 51st. Slight gains in business legislation were offset by lower scores in tax policy, institutional framework, and societal framework.
Infrastructure Remains a Weak Spot
Infrastructure continues to be one of the country’s weakest areas, with the Philippines ranking 60th out of 69 economies. While this was a slight improvement from 61st last year, the country remains near the bottom globally in this area.
The report highlights that while the Philippines is making gains in certain aspects of competitiveness, especially in economic growth, there is still significant work to be done to improve governance, strengthen business conditions, and modernize infrastructure.
