Philippines 56th / 137

The Global Competitiveness Index 2017-2018 edition

Key indicators, 2016 Source: International Monetary Fund; World Economic Outlook Database (April 2017)

Population millions 104.2 GDP per capita US$ 2,924.3

GDP US$ billions 304.7 GDP (PPP) % world GDP 0.67

Performance overview
Index Component Rank/137 Score (1-7) Trend Distance from best Edition 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18

Global Competitiveness Index 56 4.4 Rank 65 / 144 59 / 148 52 / 144 47 / 140 57 / 138 56 / 137
Subindex A: Basic requirements 67 4.6 Score 4.2 4.3 4.4 4.4 4.4 4.4
1st pillar: Institutions 94 3.5
1st pillar:
2nd pillar: Infrastructure 97 3.4 Institutions
12th pillar: 2nd pillar:
3rd pillar: Macroeconomic environment 22 5.8 Innovation 7 Infrastructure

4th pillar: Health and primary education 82 5.6

11th pillar: 3rd pillar:
Subindex B: Efficiency enhancers 61 4.3 Business Macroeconomic
sophistication environment
5th pillar: Higher education and training 55 4.6
10th pillar: 1 4th pillar:
6th pillar: Goods market efficiency 103 4.0 Market size Health and primary
education
7th pillar: Labor market efficiency 84 4.0
9th pillar: 5th pillar:
8th pillar: Financial market development 52 4.2 Technological Higher education
readiness and training
9th pillar: Technological readiness 83 3.8
8th pillar: 6th pillar:
10th pillar: Market size 27 5.0 Financial market Goods market
development 7th pillar: efficiency
Labor market
Subindex C: Innovation and sophistication factors 61 3.7 efficiency

11th pillar: Business sophistication 58 4.1

Philippines East Asia and Pacific
12th pillar: Innovation 65 3.3

Most problematic factors for doing business Source: World Economic Forum, Executive Opinion Survey 2017

Inefficient government bureaucracy 19.7

Inadequate supply of infrastructure 17.9
Corruption 13.7
Tax regulations 10.9
Tax rates 8.9
Policy instability 7.6
Access to financing 4.9
Government instability/coups 3.2
Restrictive labor regulations 3.0
Poor work ethic in national labor force 2.6
Insufficient capacity to innovate 2.3
Inadequately educated workforce 2.1
Crime and theft 1.8
Foreign currency regulations 0.9
Inflation 0.4
Poor public health 0.1
0 5 10 15 20

Note: From the list of factors, respondents to the World Economic Forum's Executive Opinion Survey were asked to select the five most problematic factors for doing business in their country
and to rank them between 1 (most problematic) and 5. The score corresponds to the responses weighted according to their rankings.
The Global Competitiveness Index in detail Philippines
Index Component Rank/137 Value Trend Index Component Rank/137 Value Trend

1st pillar: Institutions 94 3.5 6th pillar: Goods market efficiency 103 4.0
1.01 Property rights 73 4.3 6.01 Intensity of local competition 54 5.3
1.02 Intellectual property protection 71 4.1 6.02 Extent of market dominance 119 3.0
1.03 Diversion of public funds 106 2.7 6.03 Effectiveness of anti-monopoly policy 106 3.2
1.04 Public trust in politicians 107 2.2 6.04 Effect of taxation on incentives to invest 83 3.5
1.05 Irregular payments and bribes 118 2.9 6.05 Total tax rate % profits 91 42.9
1.06 Judicial independence 88 3.6 6.06 No. of procedures to start a business 136 16
1.07 Favoritism in decisions of government officials 105 2.5 6.07 Time to start a business days 115 28.0
1.08 Efficiency of government spending 88 2.9 6.08 Agricultural policy costs 119 3.1
1.09 Burden of government regulation 111 2.8 6.09 Prevalence of non-tariff barriers 64 4.4
1.10 Efficiency of legal framework in settling disputes 113 2.8 6.10 Trade tariffs % duty 58 4.0
1.11 Efficiency of legal framework in challenging regulations 83 3.1 6.11 Prevalence of foreign ownership 90 4.3
1.12 Transparency of government policymaking 81 3.9 6.12 Business impact of rules on FDI 97 4.2
1.13 Business costs of terrorism 125 3.8 6.13 Burden of customs procedures 125 3.0
1.14 Business costs of crime and violence 113 3.6 6.14 Imports % GDP 88 36.2
1.15 Organized crime 104 4.1 6.15 Degree of customer orientation 50 4.9
1.16 Reliability of police services 112 3.4 6.16 Buyer sophistication 76 3.3
1.17 Ethical behavior of firms 84 3.6
7th pillar: Labor market efficiency 84 4.0
1.18 Strength of auditing and reporting standards 48 5.0
1.19 Efficacy of corporate boards 54 5.0 7.01 Cooperation in labor-employer relations 33 4.8
1.20 Protection of minority shareholders’ interests 51 4.3 7.02 Flexibility of wage determination 86 4.6
1.21 Strength of investor protection 0-10 (best) 111 4.2 7.03 Hiring and firing practices 77 3.6
7.04 Redundancy costs weeks of salary 116 27.4
2nd pillar: Infrastructure 97 3.4 7.05 Effect of taxation on incentives to work 35 4.4
2.01 Quality of overall infrastructure 113 3.0 7.06 Pay and productivity 43 4.4
2.02 Quality of roads 104 3.1 7.07 Reliance on professional management 44 4.6
2.03 Quality of railroad infrastructure 91 1.9 7.08 Country capacity to retain talent 57 3.6
2.04 Quality of port infrastructure 114 2.9 7.09 Country capacity to attract talent 71 3.3
2.05 Quality of air transport infrastructure 124 2.9 7.10 Female participation in the labor force ratio to men 102 0.65
2.06 Available airline seat kilometers millions/week 27 1,424.7
8th pillar: Financial market development 52 4.2
2.07 Quality of electricity supply 92 4.2
2.08 Mobile-cellular telephone subscriptions /100 pop. 88 109.2 8.01 Availability of financial services 42 4.6
2.09 Fixed-telephone lines /100 pop. 105 3.7 8.02 Affordability of financial services 43 4.2
8.03 Financing through local equity market 38 4.3
3rd pillar: Macroeconomic environment 22 5.8 8.04 Ease of access to loans 54 4.1
3.01 Government budget balance % GDP 24 -0.4 8.05 Venture capital availability 70 2.8
3.02 Gross national savings % GDP 49 23.8 8.06 Soundness of banks 35 5.5
3.03 Inflation annual % change 1 1.8 8.07 Regulation of securities exchanges 36 5.1
3.04 Government debt % GDP 33 33.7 8.08 Legal rights index 0-10 (best) 95 3
3.05 Country credit rating 0-100 (best) 48 61.4
9th pillar: Technological readiness 83 3.8
4th pillar: Health and primary education 82 5.6 9.01 Availability of latest technologies 73 4.6
4.01 Malaria incidence cases/100,000 pop. 27 12.5 9.02 Firm-level technology absorption 51 4.7
4.02 Business impact of malaria 26 5.0 9.03 FDI and technology transfer 63 4.5
4.03 Tuberculosis incidence cases/100,000 pop. 125 322.0 9.04 Internet users % pop. 74 55.5
4.04 Business impact of tuberculosis 112 4.3 9.05 Fixed-broadband Internet subscriptions /100 pop. 87 5.5
4.05 HIV prevalence % adult pop. 1 0.1 9.06 Internet bandwidth kb/s/user 78 43.4
4.06 Business impact of HIV/AIDS 105 4.5 9.07 Mobile-broadband subscriptions /100 pop. 89 46.3
4.07 Infant mortality deaths/1,000 live births 93 22.2
10th pillar: Market size 27 5.0
4.08 Life expectancy years 103 68.4
4.09 Quality of primary education 66 4.1 10.01 Domestic market size index 27 4.8
4.10 Primary education enrollment rate net % 66 96.0 10.02 Foreign market size index 33 5.4
10.03 GDP (PPP) PPP $ billions 29 805.2
5th pillar: Higher education and training 55 4.6 10.04 Exports % GDP 89 28.8
5.01 Secondary education enrollment rate gross % 80 88.4
11th pillar: Business sophistication 58 4.1
5.02 Tertiary education enrollment rate gross % 77 35.8
5.03 Quality of the education system 46 4.2 11.01 Local supplier quantity 49 4.7
5.04 Quality of math and science education 76 3.9 11.02 Local supplier quality 73 4.3
5.05 Quality of management schools 38 4.8 11.03 State of cluster development 62 3.8
5.06 Internet access in schools 62 4.4 11.04 Nature of competitive advantage 94 3.1
5.07 Local availability of specialized training services 43 4.8 11.05 Value chain breadth 53 4.0
5.08 Extent of staff training 38 4.4 11.06 Control of international distribution 60 3.8
11.07 Production process sophistication 80 3.6
11.08 Extent of marketing 36 4.8
11.09 Willingness to delegate authority 44 4.6

12th pillar: Innovation 65 3.3

12.01 Capacity for innovation 45 4.5
12.02 Quality of scientific research institutions 75 3.7
12.03 Company spending on R&D 51 3.5
12.04 University-industry collaboration in R&D 59 3.5
12.05 Gov't procurement of advanced technology products 91 3.0
12.06 Availability of scientists and engineers 74 3.8
12.07 PCT patents applications/million pop. 83 0.4

Note: Values are on a 1-to-7 scale unless indicated otherwise. Trend lines depict evolution in values since the 2012-2013 edition (or earliest edition available). For detailed definitions,
sources, and periods, consult the interactive Economy Profiles and Rankings at http://gcr.weforum.org/