PH

COUNTRYPROFILE PHILIPPINES

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IMD World Competitiveness Yearbook 2020, Talent & Digital 2019: summaries

WORLD COMPETITIVENESSRANKING 2020

All data are available from theWorld Competitiveness Online.

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BASIC FACTSCapital

Land area (square km '000) 3002019

Exchange Rate (per $) 51.7962019

Population - market size (millions) 108.272019 9

Gross Domestic Product (GDP) (US$ billions) 359.42019 35

GDP (PPP) per capita (US$) 9,4872019 60

Real GDP growth (%) 5.92019 2

Consumer price inflation (%) 2.482019 41

Unemployment rate (%) 5.062019 33

Labor force (millions) 44.692019 9

Current account balance (% of GDP) -0.132019 35

Direct investment stocks inward ($bn) 83.02018 46

Direct investment flows inward (% of GDP) 2.972018 18

PEER GROUPS RANKINGSASIA - PACIFIC (14 countries) POPULATIONS > 20 MILLION (29 countries)

COMPETITIVENESS TRENDS - OVERALL

PHILIPPINESOVERALL PERFORMANCE (63 countries) Rank

Manila

CHALLENGES IN 2020Mitigating Covid-19’s economic impacts and adjusting to the “new

normal”.

Asian Institute of Management, Rizalino S. Navarro Policy Center

for Competitiveness

COMPETITIVENESS LANDSCAPE

42 41 50 46 45

2016 2017 2018 2019 2020

30

4843

26

4437

14

4857

5345

10

3729

33

60

48

5955

61

Dom

estic

Eco

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Inte

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iona

l Tra

de

Inte

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l Inv

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ent

Empl

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ent

Pric

es

Publ

ic F

inan

ce

Tax

Polic

y

Inst

itutio

nal F

ram

ewor

k

Busi

ness

Leg

isla

tion

Soci

etal

Fra

mew

ork

Prod

uctiv

ity &

Effi

cien

cy

Labo

r M

arke

t

Fina

nce

Man

agem

ent

Prac

tices

Att

itude

s an

d V

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Basi

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Tech

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gica

l Inf

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Scie

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Hea

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nvir

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Educ

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Economic Performance Government Efficiency Business Efficiency Infrastructure

1211

13 13 13

2016 2017 2018 2019 2020

18 16 21 20 19

2016 2017 2018 2019 2020

• Mitigating Covid-19’s economic impacts and adjusting to the “new normal”.

• Preparing the healthcare system for possible succeeding waves of Covid-19.

• Ensuring adequate and prompt aid to vulnerable households and businesses.

• Quickly resuming the government’s “Build, Build, Build” infrastructure investment program.

• Reviving business and consumer confidence.

Provided by:Asian Institute of Management, Rizalino S. Navarro Policy Center for Competitiveness

IMPROVEMENTSWCY 2019

WCY 2020 DECLINES

WCY 2019

1.4.04 Employment - long-term growth -0.22 2.14 1.1.18 Gross fixed capital formation - real growth 14.03

3.2.14 Labor force long-term growth -1.59 0.82 2.4.07 Government subsidies 0.78

1.2.02 Current account balance -2.38 -0.13 4.4.23 Environment-related technologies 0.03

2.3.08 Exchange rate stability 0.129 0.024 4.5.10 Student mobility inbound 0.14

1.5.01 Consumer price inflation 5.21 2.48 1.5.04 Office rent 278

1.4.08 Long-term unemployment 0.08 0.04 2.1.02 Government budget surplus/deficit (%) -0.99

2.3.13 Bribery and corruption 1.29 1.87 2.4.12 New business density 0.3

4.3.16 Patent applications per capita 0.48 0.69 2.4.03 Public sector contracts 5.36

4.5.04 Total public exp. on education per student 268 376 2.4.09 State ownership of enterprises 5.88

4.5.03 Gov. expenditure on education per student 10.1 12.9 2.4.18 Immigration laws 6.14

2.5.02 Homicide 11.02 8.41 1.1.19 Resilience of the economy 6.88

1.2.12 Exports of commercial services ($bn) 35.59 41.36 4.1.20 Electricity costs for industrial clients 0.144

3.2.21 Brain drain 3.72 4.29 2.5.10 Equal opportunity 5.88

4.1.14 Distribution infrastructure 4.38 5.04 3.3.14 Shareholders' rights 6.40

4.1.13 Quality of air transportation 5.56 6.38 4.4.18 Renewable energies (%) 34.1

COMPETITIVENESS EVOLUTION & ATTRACTIVENESS INDICATORS

PHILIPPINESCOMPETITIVENESS EVOLUTION

1.51

317

-1.11

0.3

4.81

5.28

5.52

5.93

The criteria below highlight the 15 biggest Improvements and the 15 biggest Declines in the overall performance of the economy. They are

determined by the largest percentage changes in the value of each criterion from one yearbook to the next.

WCY 2020

31.7

KEY ATTRACTIVENESS INDICATORSFrom a list of 15 indicators, respondents of the Executive Opinion Survey were asked to select 5 that they perceived as the key

attractiveness factors of their economy. The chart shows the percentage of responses per indicator from the highest number of responses

to the lowest.

1.08

0.02

0.12

6.27

0.156

5.44

0.0%3.3%3.3%4.4%5.6%12.2%22.2%28.9%32.2%41.1%48.9%61.1%64.4%67.8%76.7%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Effective legal environmentCompetitive tax regime

Strong R&D cultureCompetency of government

Reliable infrastructurePolicy stability & predictability

Effective labor relationsBusiness-friendly environment

Quality of corporate governanceAccess to financing

Cost competitivenessHigh educational level

Open and positive attitudesDynamism of the economy

Skilled workforce

WORLD COMPETITIVENESSDIGITAL RANKING 2019

All data are available from theWorld Competitiveness Online.

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Alpha AlphaLabelBeta BetaLabel Gamma GammaLabel1 2 2 2 2 2 24 4 4 2 2

6.5 4 4 2 28.5 4 4 2 2

10.5 4 4 2 2

2015 2016 2017 2018 2019

45 46 46 56 55

49 50 53 50 51

50 50 51 58 55

40 40 43 52 54

OVERALL

Future readiness

COMPETITIVENESS & DIGITAL RANKINGS

PEER GROUPS RANKINGS

ASIA - PACIFIC (14 countries) POPULATIONS > 20 MILLION (29 countries)

Knowledge

Technology

DIGITAL TRENDS - OVERALL

PHILIPPINES

OVERALL PERFORMANCE (63 countries)

OVERALL & FACTORS - 5 years

45 46 4656 55

41 42 4150 46

2015 2016 2017 2018 2019

Digital

Competitiveness

11 11 1112 12

2015 2016 2017 2018 2019

17 17 1823 22

2015 2016 2017 2018 2019

51 41 54 54

55 60 40 5155

54 53 42 58

Knowledge Talent Training & education Scientific concentration

Technology Regulatory framework Capital Technological framework

Future readiness Adaptive attitudes Business agility IT integrationThe direction of the triangle indicates the performance change from the last year: improved or stabledeclined

Overall Factors Sub-Factors

N.B. This graph provides only a comparison of the country’s performance in the two rankings.

u Overall top strengths

w Overall top weaknesses

Subfactors 2015 2016 2017 2018 201932 32 39 48 41

57 55 54 52 54

46 49 53 50 54

Talent Rank Rank Rank

Educational assessment PISA - Math - 27 w 59 International experience 31 49 57 Foreign highly-skilled personnel 32 54 u 7 Management of cities 53 55 34 Digital/Technological skills 48 u 13 48 Net flow of international students 35 49 u 12 52

Subfactors 2015 2016 2017 2018 201958 59 62 61 60

33 28 29 43 40

47 48 50 52 51

Regulatory framework Rank Rank Rank

w Starting a business 62 40 w 62w Enforcing contracts 61 53 51 Immigration laws 20 29 41 Development and application of technology46 43 58 Scientific research legislation 46 43 w 62 Intellectual property rights 56 u 15 u 1

Subfactors 2015 2016 2017 2018 201948 46 50 60 53

23 23 23 31 42

56 57 57 57 58

Adaptive attitudes Rank Rank Rank

E-Participation 19 28 54 Internet retailing 59 40 35 Tablet possession 55 34 49 Smartphone possession 58 39 55 Attitudes toward globalization 25 41

Technological framework

Capital Technological framework

Scientific concentration

Training & education Scientific concentration

Talent

Robots in Education and R&D

FUTURE READINESS

IT integration

Business agility IT integration

FACTORS BREAKDOWN - STRENGTHS AND WEAKNESSES

PHILIPPINES

TECHNOLOGY

Opportunities and threats E-GovernmentWorld robots distribution Public-private partnerships

Total expenditure on R&D (%)Total public expenditure on education Total R&D personnel per capita

Training & education

Adaptive attitudes

Business agility

Venture capital Internet bandwidth speedInvestment in Telecommunications High-tech exports (%)

Regulatory framework

Capital

IT & media stock market capitalization Communications technologyFunding for technological development Mobile Broadband subscribersBanking and financial services Wireless broadbandCountry credit rating Internet users

Higher education achievement Female researchersPupil-teacher ratio (tertiary education) R&D productivity by publicationGraduates in Sciences Scientific and technical employmentWomen with degrees High-tech patent grants

Employee training

KNOWLEDGE

Agility of companies Cyber securityUse of big data and analytics Sofware piracyKnowledge transfer

WORLD TALENTRANKING 2019

All data are available from theWorld Competitiveness Online.

Visit our eShop

Alpha AlphaLabel Beta BetaLabel Gamma GammaLabel1 2 2 2 2 2 24 4 4 2 2

Value

3.5 % 50w 10.1 % 56w 376 US$ 61w 29.08 ratio 59w 23.88 ratio 57 4.63 Survey [0..10] 39 6.21 Survey [0..10] 27 37.91 % 55 4.02 Survey [0..10] 45

Value

u 69.70 index 15 7.05 Survey [0..10] 30 5.93 Survey [0..10] 29 3.72 Survey [0..10] 47 4.99 Survey [0..10] 49 5.21 Survey [0..10] 32 12,791 US$ 43 152,973 US$ 35u 5.35 % 8 3.95 Survey [0..10] 48 18.19 micrograms 42

Value

1.60 % 19u 7.01 Survey [0..10] 3 6.33 Survey [0..10] 33 5.49 Survey [0..10] 31 6.12 Survey [0..10] 21 5.42 Survey [0..10] 43u 28.74 % 13 6.16 Survey [0..10] 35 6.58 Survey [0..10] 29u 7.79 Survey [0..10] 16w 0.14 number 56 - Average -

Investment & Development 2019 Rank

Health infrastructure meets the needs of society

2019 Rank

Total public expenditure on education Percentage of GDP

Pupil-teacher ratio (secondary education)Apprenticeships are sufficiently implemented

Readiness 2019 Rank

Educational assessment - PISA PISA survey of 15-year olds

Appeal

Exposure to particle pollution Mean population exposure to PM2.5, Micrograms per cubic metre

is readily available

Labor force growth Percentage change

Skilled labor

Management education meets the needs of the business community

Language skills are meeting the needs of enterprises

Student mobility inbound Foreign tertiary-level students per 1000 inhabitants

Primary and secondary education meets the needs of a competitive economy

Graduates in Sciences % of graduates in ICT, Engineering, Math & Natural Sciences

University education meets the needs of a competitive economy

Finance skills are readily available

International experience of senior managers is generally significant

Competent senior managers are readily available

Justice is fairly administered

Remuneration in services professions Gross annual income including supplements such as bonuses, US$

Remuneration of management Total base salary plus bonuses and long-term incentives, US$

Effective personal income tax rate Percentage of an income equal to GDP per capita

Brain drain (well-educated and skilled people) does not hinder competitiveness in your economy

Quality of life is high

Foreign highly-skilled personnel are attracted to your country's business environment

Cost-of-living index Index of a basket of goods & services in the main city, including housing (New York City = 100)

Attracting and retaining talents is a priority in companies

Worker motivation in companies is high

Gov. expenditure on education per student Percentage of GDP per capita (secondary education)

Total public exp. on education per student

PHILIPPINES

Spending per enrolled pupil/student, all levels

Pupil-teacher ratio (primary education) Ratio of students to teaching staff

Ratio of students to teaching staff

Employee training is a high priority in companies

Female labor force Percentage of total labor force

IMD World Talent Ranking 2019

OVERALL PERFORMANCE (63 countries)

5755

45

55

49

61 6163 62 61

3538

34

38

31

27

23

11

37

26

2015 2016 2017 2018 2019

Overall

Investment &Development

Appeal

Readiness

61

3149

26

Investment & Development

Appeal

Readiness

The direction of the triangle indicates the performance change from the last year: improved or stabledeclined

2020

IMD WORLDCOMPETITIVENESSYEARBOOK

IMD

Wor

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Year

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