MANILA – The Philippines fell nine notches in the 2018 World Competitiveness Yearbook, the steepest drop among Southeast Asian nations with Malaysia emerging as the regional leader, according to a copy of the report released Thursday.
The Philippines’ ranking fell across all 4 indicators: economic performance, government efficiency, business efficiency and infrastructure. The report was released by the Asian Institute of Management, the study’s local partner.
Despite having one of the fastest economic growth rates in Asia, the Philippines’ current account deficit, or the difference between imports and exports, more than doubled from 2016 to 2017, the report said.
Growth in foreign direct investments slowed despite inflows reaching record levels. The peso also depreciated substantially. The report also flagged low savings and GDP per capita as well as quickening inflation.
Business efficiency declined due to a decrease in competitiveness in terms of labor, management practices, and attitudes and values. The report said the last 2 sub-indicators were “perception-based.”
Government efficiency fell 7 notches due to declines in the public finance, business legislation and societal framework sub-indicators, according to the report. The declines were in “perception-based” indicators, it said.
“Although government debt is increasing, fiscal discipline has been achieved through reforms in the last 10 or so years,” it said adding the ratio of the size of the debt to the economy was at its lowest in 4 decades.
Government needs to invest in social infrastructure, not just on physical infrastructure as outlined in its “Build, Build, Build” program, it said. (ABS-CBN News)
