Infrastructure, unemployment remain country’s top challenges

Except for infrastructure, the Philippines has improved in the three other measures of competitiveness - economic performance, government efficiency and business efficiency, in the latest World Competitiveness Yearbook (WCY).

The Philippines moved up 5 places in the latest International Institute for Management Development's (IMD) World Competitiveness Report from No. 43 in 2012 to No. 38 in 2013. A total of 60 economies around the world were reviewed for the 2013 report.

Based on the country report under the 2013 WCY, infrastructure is the only factor where the Philippines experienced a decline -from 55th to 57th. Overall,

"Many roads remain unpaved and the main airport is operating beyond capacity," said the report. Other challenges in 2013 faced by the Philippines are corruption, unemployment, undeveloped financial system and natural disasters.

On corruption, the report noted that the Philippines ranked 105th of the 174 country by Transparency Institutional. On unemployment, the Philippines is among the highest of the ASEAN 5 group. The country has also an undeveloped financial system and access to finance making access to finance one of the greatest challenges facing SMEs. Natural disasters also affect the country's competitiveness as the average 20 typhoon visits annually cause billions of damages.

The highest improvement was posted in economic performance, which improved 11 places to 31st from 42nd. This is backed by the 6.6 percent real GDP growth in 2012, the second highest in WCY, controlled inflation of 3.2 percent, and an 8.8 percent increase in exports of goods and services.

Government efficiency hardly moved but improved from 32nd to 31st. Although total tax revenues increased by 13.2 percent, budget deficit increased from P197.8 billion in 2011 to P242.8 billion in 2012. The debt-to-GDP ratio of 51.4 percent in 2012 is slightly higher than the 50.9 percent in 2011.

Business efficiency improved seven places from 26th to 19th, mostly because of the soaring stock market.

Other big improvements in the 15 criteria set by the WCY are on the country's image abroad or branding, investment in telecommunications, direct investment flows, social cohesion, government subsidies, consumer price inflation, interest rate spread, protectionism, researchers and scientists.

The Philippines, however, has to improve in 15 other areas where it posted the biggest declines. These are on real short-term interest rate, high-tech exports, employer's social security contribution rate, water transportation, government budget, relocation threats of production, direct investment stocks abroad, communications technology, current account balance, state ownership of enterprises, foreign investors, employe training, social responsibility, investment risk and start-up procedures.

In terms of the most attractive key indicators, the Philippines ranked high in skilled workforce with 89 percent of respondents followed by high educational level with 67.1 percent and dynamism of the economy with 61.6 percent.

The Philippines also ranked high for open and positive attitudes with 56.2 percent, cost competitiveness with 53.4 percent, quality of corporate governance with 27.4 percent and competency of government with 23.3 percent.

The areas where the Philippines ranked lowest are on effective legal environment, strong research and development culture, competitive tax regime, reliable infrastructure, effective labor relations, policy stability and predictability, access to financing and business-friendly environment.

Loading...

Editor’s note:Yahoo Philippines encourages responsible comments that add dimension to the discussion. No bashing or hate speech, please. You can express your opinion without slamming others or making derogatory remarks.

  • Pacquiao sees fist of God delivering win over Mayweather
    Pacquiao sees fist of God delivering win over Mayweather

    Filipino boxing hero Manny Pacquiao is confident he can beat American arch-rival Floyd Mayweather in Las Vegas on Saturday with the power of God, after abandoning a life he said was packed with sin condemning him to hell. Pacquiao is in top form both in mind and spirit after he traded his boozing, gambling and womanising ways for a devout life of prayer, his spiritual adviser, Jeric Soriano, told AFP in a recent Manila interview. Except the world got to him," Soriano said of Pacquiao's …

  • Profiles of foreigners due to be executed in Indonesia
    Profiles of foreigners due to be executed in Indonesia

    Eight foreign drug convicts are set to be executed in Indonesia after losing all appeals for clemency. Here are brief profiles of the inmates, who include two from Australia, one each from Brazil and the Philippines, and four from Africa. Myuran Sukumaran A ringleader of the Bali Nine drugs smuggling syndicate, Sukumaran was born in London in 1981 and moved with his Sri Lankan family to Australia when he was a child. Enticed by the prospect of easy money, in 2005 he helped to organise a …

  • Indonesia says will not delay execution of Filipina convict
    Indonesia says will not delay execution of Filipina convict

    JAKARTA (Reuters) - The execution of a Filipina drug convict by an Indonesian firing squad will not be delayed despite last-minute appeals by the Philippine government, the attorney general said on Tuesday. Indonesian President Joko Widodo earlier met with a migrant workers' group to discuss the case of Mary Jane Veloso, who is one of nine people set to be executed within hours. (Reporting by Rosemarie Francisco in MANLIA and Gayatri Suroyo in JAKARTA; Editing by Clarence Fernandez) …

  • Nine face midnight firing squad in Indonesia, hopes for reprieve gone
    Nine face midnight firing squad in Indonesia, hopes for reprieve gone

    By Kanupriya Kapoor CILACAP, Indonesia (Reuters) - Nine drug traffickers held emotional farewell meetings with their families at an Indonesian prison on Tuesday, after Jakarta rejected last-ditch pleas from around the world for clemency and ordered their mass execution to proceed within hours. "I won't see him again," said Raji Sukumaran, the mother of an Australian who will go before a firing squad along with a fellow countryman and convicts from Nigeria, Brazil, the Philippines and …

  • Aquino appeals to Indonesia one more time to keep Filipina alive
    Aquino appeals to Indonesia one more time to keep Filipina alive

    Philippine President Benigno Aquino said he made one last appeal to the Indonesian government to spare a Filipina among nine prisoners set to be executed for drug trafficking on Tuesday as she could be a vital witness in prosecuting drug syndicates. It was Aquino's third personal appeal, after the Indonesian attorney general rejected the Philippines' request on Monday for a second judicial review of the case of Mary Jane Veloso, who her lawyers say merely served as an unknowing mule to drug …

  • Cheapest motorcycles in the Philippines under PhP 40,000
    Cheapest motorcycles in the Philippines under PhP 40,000

    Are you hunting for an affordable motorcycle which you can use for personal use or a family service vehicle? Carmudi PH presents to you some of the cheapest motorcycles in the Philippines today. These budget friendly motorbikes will surely not hurt your pockets, and you may even buy them on the spot instead of monthly […] The post Cheapest motorcycles in the Philippines under PhP 40,000 appeared first on Carmudi Philippines. …

  • Indonesia gears up for executions as families wail in grief
    Indonesia gears up for executions as families wail in grief

    Indonesia made final preparations Tuesday to execute eight foreigners by firing squad, as family members wailed in grief during last visits to their loved ones and ambulances carrying white coffins arrived at the drug convicts' prison. Relatives of Myuran Sukumaran and Andrew Chan, the Australian ringleaders of the so-called "Bali Nine" heroin trafficking group, arrived at Nusakambangan prison calling for mercy for their loved ones, with Sukumaran's sister collapsing in grief. They are among …

  • Labor Day heat index may heat feverish levels

    Temperatures could soar on Labor Day this Friday, with the "init factor" reaching the 40°C level in some areas of the country. Labor Day is a holiday in the Philippines, though many Filipinos are expected to go out to the streets to call for better working conditions. The so-called "init factor" or "heat index" gives the apparent temperature, taking into account the actual air temperature as well as other factors such as humidity. State weather agency PAGASA's Tuesday heat index indicated …

POLL

Should Aquino be held accountable over the Mamasapano operations?

Loading...
Poll Choice Options