The Philippines has inched up in the 2025 IMD World Competitiveness Ranking, placing 51st out of 69 economies, improving by one notch from its 52nd position in both 2024 and 2023.
According to the Switzerland-based International Institute for Management Development (IMD), the country’s slight rise reflects the broader momentum seen in some Asian economies, such as Taiwan and Malaysia, which are benefiting from targeted industrial strategies and digital innovation.
Despite the modest progress, the IMD emphasized persistent hurdles for the Philippines, including sluggish economic dynamism, inflation concerns, and the need for more inclusive investments in technology to boost workforce productivity and encourage entrepreneurship. The report also called for enhanced healthcare and education systems to ensure inclusive growth and reduce societal vulnerabilities.
In the four main pillars of competitiveness, the Philippines ranked 33rd in economic performance, 51st in business efficiency, 46th in government efficiency, and 60th in infrastructure. Gains were noted in areas like domestic economy, trade, and employment, but these were offset by declines in international investment and price stability.
IMD World Competitiveness Center (WCC) director Arturo Bris underscored the importance of unity in governance amid global uncertainties. “Government efficiency and fragmentation are highly connected,” he said. “Economic and political consensus creates stability, and vice versa.”
The report also underscored that institutional strength is now a critical asset in navigating an increasingly volatile world, where macroeconomic fundamentals alone are no longer enough to stay competitive.
Switzerland returned to the top of the rankings, followed by Singapore and Hong Kong. Meanwhile, Gulf nations like Qatar made notable entries into the top 10, bolstered by strategic reforms in financial systems and labor markets.
The annual competitiveness study, now in its 37th year, evaluates how well countries manage resources and competencies to foster long-term prosperity.
