By Justine Irish D. Tabile, Reporter

THE PHILIPPINES improved one spot in a global competitiveness index, but remained a laggard in the Asia-Pacific region, according to the Asian Institute of Management Rizalino S. Navarro Policy Center for Competitiveness (AIM RSN PCC).

Citing Switzerland-based International Institute for Management Development’s (IMD) 2025 World Competitiveness Yearbook (WCY), the center said that the Philippines ranked 51^st out of 69 economies.

AIM RSN PCC is the IMD’s partner in the Philippines.

Despite the improvement in ranking, the Philippines still lagged its neighbors, ranking 13^th out of 14 Asia-Pacific economies in the index.

Singapore ranked second in the global index, while Hong Kong ranked third and Taiwan placed sixth.

The Philippines was also behind Malaysia (23^rd), Thailand (30^th) and Indonesia (40^th).

The WCY, which started in 1989, ranks economies across four competitiveness factors: economic performance, government efficiency, business efficiency, and infrastructure.

For this year, the report covered 69 economies, up from 67 last year, following the addition of Kenya, Namibia, and Oman.

Switzerland placed first in the overall ranking.

In a statement, AIM RSN PCC said that the Philippines’ results this year are “a mixed bag,” as improvements were seen in two out of the four pillars.

In particular, the country’s rank in the economic performance pillar improved to 33^rd in this year’s report, up seven spots from 40^th place last year, after only seeing a marginal drop in the international investment sub-factor.

“The rest of the sub-factors saw improvements to their rankings, with the prices sub-factor improving the most by climbing nine places from 48^th in 2024 to 39^th in 2025,” AIM RSN PCC said.

“The domestic economy indicator improved from 27^th in 2024 to 22^nd in 2025, the international trade indicator improved from 58^th in 2024 to 55^th in 2025, and the employment indicator rose from 10^th in 2024 to 7^th in 2025,” it added.

On the other hand, the Philippines moved up one spot to 60^th in the infrastructure pillar, which has been a “perennial challenge” for the country in previous years.

“The basic infrastructure sub-factor (60^th spot from 62^nd) and technological infrastructure sub-factor (43^rd spot from 55^th) saw improvements to their respective rankings,” AIM RSN PCC said.

However, the center said that declines were seen in the scientific infrastructure sub-factor (62^nd spot from 60^th) and the health and environment sub-factor (61^st spot from 60^th).

Meanwhile, the country slipped three notches in the business efficiency pillar to 46^th in 2025 and dipped two spots in the government efficiency pillar to 51^st.

The AIM center said that the results of the report reflect the challenges the Philippines continues to face, such as “rekindling the country’s economic dynamism and growth trajectory, addressing inflation expectations, promoting investments in inclusive technology, improving education and healthcare, and adapting to shifting global economic and geopolitical dynamics.”

Sought for comment, Reyes Tacandong & Co. Senior Adviser Jonathan L. Ravelas said that the slight rise in the country’s competitiveness ranking is a “positive signal.”

However, he noted that the Philippines falling behind regional peers shows a need for deeper reforms.

“Prioritizing digital infrastructure, streamlining bureaucracy, and investing in talent development can help us close the gap and compete more effectively,” Mr. Ravelas said in a Viber message.

Meanwhile, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said that the net improvement in the ranking “may be partly attributed to the easing inflation trend that justified local policy rate cuts.”

He also sees the country’s economic growth, which is among the fastest in Asia, may drive competitiveness.

To further improve the ranking, Mr. Ricafort said the country needs to “further develop infrastructure, boost productivity in agriculture and manufacturing industries, bring down electricity costs, and further ease and reduce the cost of doing business.”