PH ranks 56th in global competitiveness index

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Metro Manila (CNN Philippines, September 27) — The Philippines ranked 56th in the World Economic Forum's (WEF) global competitiveness index for 2017, out of the 137 economies included in the report.

Released on Tuesday, the report showed that inefficient government bureaucracy, inadequate supply for infrastructure, corruption, and tax regulations were among the most problematic factors of doing business in the country.

To determine these factors, the WEF asked respondents in its Executive Opinion Survey to select the five most problematic aspects for doing business in the country.

Other problematic factors included tax rates, policy instability, access to financing, government instability, restrictive labor regulations, and poor work ethic of the national labor force.

While the Philippines' rank seemingly climbed up from 57th in 2016, the number of economies included in the index also decreased from 138.

On a scale of 1 to 7, however, the country's overall score slipped from 4.36 in 2016 to 4.35 in 2017.

The WEF computed each economy's score against its so-called "pillars of competitiveness," composed of institutions, infrastructure, macroeconomic environment, health and primary education, higher education and training, goods market efficiency, labor market efficiency, financial market development, technological readiness, market size, business sophistication, and innovation.

The Philippines got its best rating for its "macroeconomic environment," where it ranked 22nd, followed by "market size" at 27th.

In specific components of the pillars, the Philippines topped the index or performed best in "inflation" and "HIV prevalence."

The country performed worst on the "number of procedures to start a business," ranking 136th, and "tuberculosis incidence," "burden of Customs procedures," and "business cost of terrorism," all at 125th.

According to the WEF, the global competitiveness report "assesses the competitiveness landscape of 137 economies, providing unique insight into the drivers of their productivity and prosperity."

Switzerland, United States, and Singapore topped the index, with overall scores of 5.86, 5.85, and 5.71, respectively.

On the other end of the spectrum are Chad, Mozambique, and Yemen, whose respective overall scores are 2.99, 2.89, and 2.71.

The WEF also noted that in East Asia and the Pacific, 13 out of 17 countries have increased their scores, leaving only Singapore, the Philippines, Cambodia, and Laos with decreased scores.