The Philippines climbed one spot in this year’s edition of the World Competitiveness Ranking by the Switzerland-based International Institute for Management Development (IMD), on the back of strong economic performance, while still being among the worst performers in the Asia-Pacific region.

The IMD’s 2025 World Competitiveness Yearbook revealed that the Philippines improved its ranking to 51st out of 69 economies, up from 52nd out of 67 economies the previous year.

However, the country continues to lag behind other economies in the Asia-Pacific region, retaining its 13th rank out of 14 spots.

Out of the five economies in the Association of Southeast Asian Nations (ASEAN) region included in the ranking, the Philippines ranked last.

The IMD measures each economy’s competitiveness using 262 indicators across four key factors: economic performance, government efficiency, business efficiency, and infrastructure.

This year’s ranking is based on 170 indicators derived from statistical data, while the remaining 93 indicators are perception-based, drawn from a survey of mid- and upper-level managers in each country covered.

IMD uses these data to provide actionable analysis on economies, regions, and sub-regions, according to how they optimize their individual competencies to achieve long-term value creation.

The Asian Institute of Management (AIM) Rizalino S. Navarro Policy Center for Competitiveness, the local partner of IMD, stated that the country’s improvement this year occurred amid “geopolitical concerns and other uncertainties.”

In terms of economic performance, the Philippines improved its ranking to 33rd this year, up from 40th last year.

The strong performance this year is driven by positive developments in nearly all the sub-factors, including domestic economy, prices, employment, and international trade.

According to IMD, only the international investment sub-factor saw a dip in its ranking from 44th last year to 45th in 2025.

Last year, investments for projects approved by the country’s leading investment promotion agencies (IPAs) reached a record-high of ₱1.9 trillion.

In the first quarter of the year, seven of 13 IPAs reported approved investments worth ₱181.93 billion, down 44 percent from the ₱323.27 billion during the same period in 2024.

For business efficiency, the Philippines’ ranking declined 46th this year to 43rd last year.

In this factor, the country saw its labor market and attitudes and values factors worsened, while improving in terms of management practices and productivity and efficiency.

Taking into account government efficiency, the Philippines’ position slipped this year, falling from 51st to 49th.

Under this factor, the country saw a marginal improvement in business legislation, while falling down in tax policy, institutional framework, and societal framework.

In infrastructure, which has long been flagged for being a perennial issue for the country’s competitiveness ranking, jumped one spot from 61st to 60th this year.

IMD stated that recent developments in basic infrastructure and technological infrastructure pushed the ranking forward.

On the contrary, sub-factors related to health and environment and scientific infrastructure saw respective declines.

Under the 2025 World Competitiveness Ranking, Switzerland ranked first, followed by Singapore and Hong Kong.