COUNTRY PHILIPPINES PROFILE · PHILIPPINES. OVERALL PERFORMANCE (63 countries) Rank. Manila. CHALLENGES IN 2019. Need to speed up and sustain investments in physical infrastructure

COUNTRYPROFILE PHILIPPINES

BASIC FACTS

Capital

Land area (square km '000) 3002018

Exchange Rate (per $) 52.6612018

Population - market size (millions) 106.602018

9

Gross Domestic Product (GDP) (US$ billions) 330.82018

37

GDP (PPP) per capita (US$) 8,9362018

62

Real GDP growth (%) 6.22018

5

Consumer price inflation (%) 5.212018

57

Unemployment rate (%) 5.302018

32

Labor force (millions) 43.462018

9

Current account balance (% of GDP) -2.382018

48

Direct investment stocks inward ($bn) 78.82017

47

Direct investment flows inward (% of GDP) 2.962018

20

PEER GROUPS RANKINGS

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

COMPETITIVENESS TRENDS - OVERALL

PHILIPPINES

OVERALL PERFORMANCE (63 countries) Rank

Manila

CHALLENGES IN 2019

Need to speed up and sustain investments in physical

infrastructure.

Asian Institute of Management, Rizalino S. Navarro Policy Center

for Competitiveness

COMPETITIVENESS LANDSCAPE

41 42 4150 46

2015 2016 2017 2018 2019

12

54

42

21

46

37

14

4854

4449

10

3933

29

61

44

5956 58

Dom

est

ic E

conom

y

Inte

rnat

ional

Tra

de

Inte

rnat

ional

Inve

stm

ent

Em

plo

yment

Pri

ces

Public

Fin

ance

Tax

Polic

y

Inst

itutional

Fra

mew

ork

Busi

ness

Legi

slat

ion

Soci

eta

l Fra

mew

ork

Pro

duct

ivity

& E

ffic

iency

Lab

or

Mar

ket

Fin

ance

Man

agem

ent

Pra

ctic

es

Att

itudes

and V

alues

Bas

ic Infr

astr

uct

ure

Tech

nolo

gica

l In

fras

truct

ure

Scie

ntific

Infr

astr

uct

ure

Heal

th a

nd E

nvi

ronm

ent

Educa

tion

Economic Performance Government Efficiency Business Efficiency Infrastructure

1112

11

13 13

2015 2016 2017 2018 2019

18 18 1621 20

2015 2016 2017 2018 2019

• Need to speed up and sustain investments in physical

infrastructure.

• Inadequate investment in human capital.• Poor digital competitiveness and future-readiness.

• Need to sustain investor and consumer confidence.

• Persistent political risks.

Provided by:

Asian Institute of Management, Rizalino S. Navarro Policy Center

for Competitiveness

1

IMPROVEMENTS

WCY

2018

WCY

2019 DECLINES

WCY

2018

2.1.02 Government budget surplus/deficit (%) -2.22 -0.99 1.2.02 Current account balance -0.80

2.2.07 Effective personal income tax rate 9.68 5.35 1.5.01 Consumer price inflation 3.18

1.1.18 Gross fixed capital formation - real growth 10.30 14.03 2.2.01 Collected total tax revenues 10.88

1.2.25 Tourism receipts 1.69 2.23 3.2.01 Compensation levels 0.90

2.4.02 Protectionism 3.87 5.04 2.3.08 Exchange rate stability 0.098

2.4.13 Creation of firms 4.60 5.79 4.3.10 Researchers in R&D per capita 0.3

4.3.20 Scientific research legislation 3.94 4.82 4.3.07 Total R&D personnel per capita 0.37

4.2.04 Communications technology 3.89 4.67 3.2.03 Remuneration in services professions 10,815

2.4.04 Foreign investors 3.18 3.81 3.3.10 Stock market capitalization (%) 91.73

4.3.02 Total expenditure on R&D (%) 0.14 0.16 2.3.13 Bribery and corruption 1.54

2.4.15 Start-up procedures 16.0 13.0 4.1.21 Electricity costs for industrial clients 0.127

2.4.03 Public sector contracts 4.55 5.36 1.5.06 Gasoline prices 0.92

4.3.22 Knowledge transfer 4.00 4.65 2.5.02 Homicide 9.9

4.5.01 Total public expenditure on education 3.1 3.5 2.4.14 Start-up days 28.0

4.2.13 Development and application of technology 5.13 5.91 4.1.04 Access to water 5.89 5.28

-2.38

0.129

0.2

0.26

12,791

75.48

1.29

31.0

COMPETITIVENESS EVOLUTION & ATTRACTIVENESS INDICATORS

PHILIPPINES

COMPETITIVENESS EVOLUTION

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

2019

KEY ATTRACTIVENESS INDICATORS

From 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.

5.21

15.87

1.23

0.144

1.03

11.0

3.5%

7.0%

9.3%

9.3%

9.3%

9.3%

19.8%

20.9%

27.9%

31.4%

50.0%

57.0%

58.1%

73.3%

84.9%

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

Effective legal environment

Competency of government

Policy stability & predictability

Competitive tax regime

Strong R&D culture

Reliable infrastructure

Business-friendly environment

Effective labor relations

Access to financing

Quality of corporate governance

High educational level

Open and positive attitudes

Cost competitiveness

Dynamism of the economy

Skilled workforce

2

Sub-Factor Rankings : 2018

Domestic Economy 24

International Trade 52

International Investment 48

Employment 32

Prices 45


Public Finance 34

Tax Policy 15

Institutional Framework 46

Business Legislation 60

Societal Framework 54


Productivity & Efficiency 46

Labor Market 19

Finance 39

Management Practices 33

Attitudes and Values 34


Basic Infrastructure 61

Technological Infrastructure 46

Scientific Infrastructure 60

Health and Environment 55

Education 61

COMPETITIVENESS TRENDS - FACTOR BREAKDOWN

PHILIPPINES

ECONOMIC PERFORMANCE

49

46

2019

37

14

48

54

44

2019

BUSINESS EFFICIENCY

12

54

42

21

2019

56

58

29

INFRASTRUCTURE

2019

61

44

59

10

39

33

GOVERNMENT EFFICIENCY

34 38 2650 38

2015 2016 2017 2018 2019

36 36 37 44 41

2015 2016 2017 2018 2019

26 24 2838

32

2015 2016 2017 2018 2019

57 55 54

60 59

2015 2016 2017 2018 2019

3

Rank

4

5

6

8

8

10

14

15

19

20

Rank

6

8

14

16

17

18

20

20

21

24

Rank

2

3

6

9

14

17

20

21

23

23

Rank

1

3

4

7

12

15

16

20

26

29

1.1.19 Resilience of the economy 1.2.17 Export concentration by partner 51

2.3.05 Central bank policy 2.4.15 Start-up procedures 62

1.1.09 Gross fixed capital formation (%) 1.4.02 Employment (%) 57

1.5.04 Office rent 1.3.08 Direct investment stocks inward (% of GDP) 51

1.4.08 Long-term unemployment 1.1.21 GDP (PPP) per capita 62

1.1.18 Gross fixed capital formation - real growth 1.5.05 Food costs 58

Infrastructure Infrastructure Rank

4.5.16 Management education 4.5.05 Pupil-teacher ratio (primary education) 59

3.4.02 Changing market conditions 3.3.01 Banking sector assets 41

2.1.04 Total general government debt (%) 2.1.10 Tax evasion 51

Business Efficiency Business Efficiency Rank

1.3.06 Direct investment flows inward (% of GDP) 1.2.02 Current account balance 48

Government Efficiency Government Efficiency Rank

BALANCE SHEET - FACTOR BREAKDOWN

PHILIPPINES

STRENGTHS WEAKNESSES

62

60

4.4.12 Energy intensity 4.4.26 Pollution problems 60

61

4.2.01 Investment in Telecommunications 4.5.07 Secondary school enrollment 60

4.5.19 Language skills 4.4.11 Human development index 60

62

4.2.03 Mobile Telephone costs 4.4.06 Life expectancy at birth 61

4.4.18 Renewable energies (%) 4.2.08 Broadband subscribers 61

3.3.10 Stock market capitalization (%) 3.3.17 Venture capital 43

3.4.04 Credibility of managers 3.4.09 Entrepreneurship 46

3.2.24 Competent senior managers 3.5.02 Image abroad or branding 45

3.5.03 National culture 3.1.09 Small and medium-size enterprises 51

3.2.03 Remuneration in services professions 3.2.21 Brain drain 47

3.5.04 Flexibility and adaptability 3.2.12 Labor force (%) 60

3.2.06 Working hours 3.2.16 Female labor force 55

3.2.01 Compensation levels 3.1.01 Overall productivity (PPP) 61

3.2.18 Skilled labor 3.1.03 Labor productivity (PPP) 60

2.4.18 Immigration laws 2.4.19 Redundancy costs 54

2.2.11 Employer's social security contribution rate 2.2.08 Corporate tax rate on profit 51

2.4.07 Government subsidies 2.3.07 Foreign currency reserves per capita 55

2.2.12 Real personal taxes 2.3.13 Bribery and corruption 55

2.2.09 Consumption tax rate 2.3.08 Exchange rate stability 59

2.2.10 Employee's social security contribution rate 2.5.02 Homicide 58

2.2.07 Effective personal income tax rate 2.4.04 Foreign investors 62

2.2.01 Collected total tax revenues 2.4.14 Start-up days 59

1.5.06 Gasoline prices 1.2.18 Export concentration by product 48

1.5.01 Consumer price inflation 57

1.5.02 Cost-of-living index 1.2.09 Exports of goods (%) 48

1.1.14 Real GDP growth 1.1.20 GDP per capita 61

1.1.15 Real GDP growth per capita

4.2.17 ICT service exports 4.3.16 Patent applications per capita

4.1.07 Population - growth 4.3.18 Number of patents in force

4.3.19 Medium- and high-tech value added 4.1.04 Access to water

4.2.16 High-tech exports (%) 4.2.04 Communications technology

Economic Performance Economic Performance Rank

4

Value Average Rank Year

52.661 74.055 2018

330.8 1,264.8 37 2018

952.6 1,903.1 24 2018

0.39 1.49 38 2018

244.3 697.9 27 2018

73.8 55.2 3 2018

39.7 202.1 42 2018

12.0 16.7 49 2018

89.4 313.1 30 2018

27.0 22.6 8 2018

46.8 343.8 48 2018

14.2 28.2 61 2018

2018

9.3 3.7 2018

30.8 29.5 2018

59.9 66.8 2018

0.38 0.83 42 2017

6.2 2.7 5 2018

4.53 1.92 8 2018

5.56 2.84 8 2018

12.84 2.23 1 2018

14.03 3.83 6 2018

6.88 5.52 14 2019

3,104 30,983 61 2018

8,936 39,972 62 2018

6.7 2.6 2 2019

1.1.07 · Government consumption expenditure (%)

1.1.08 · Gross fixed capital formation ($bn)

US$ billions

1.1.09 · Gross fixed capital formation (%)

Percentage of GDP

1.1.04 · Household consumption expenditure ($bn)

US$ billions

Percentage of GDP

1.1.06 · Government consumption expenditure ($bn)

US$ billions

1.1 · Domestic Economy

1.1.00 · Exchange Rate

National currency per US$ (average)

1.1.02 · GDP (PPP)

Estimates ; US$ billions at purchasing power parity

EXTENDED COUNTRY PROFILE

PHILIPPINES

1 · Economic Performance

1.1.01 · Gross Domestic Product (GDP)

US$ billions

1.1.03 · World GDP contribution

Percentage share of world GDP in market prices

1.1.05 · Household consumption expenditure (%)

Percentage of GDP

1.1.21 · GDP (PPP) per capita

Estimates; US$ per capita at purchasing power parity

1.1.22 · Forecast: Real GDP growth

US$ per capita

1.1.19 · Resilience of the economy

Resilience of the economy to economic cycles is strong

1.1.20 · GDP per capita

1.1.18 · Gross fixed capital formation - real growth

Percentage change, based on constant prices.

1.1.17 · Government consumption expenditure - real growth


1.1.16 · Household consumption expenditure - real growth


1.1.15 · Real GDP growth per capita

Percentage change, based on national currency in constant prices

1.1.14 · Real GDP growth


Economic sectors / Services

Breakdown as a percentage of GDP

1.1.13 · Economic complexity index

Measures knowledge intensity, by considering exports

Economic sectors / Industry


1.1.12 · Economic sectors

Breakdown of the economic sectors, percentage of GDP

Economic sectors / Agriculture


1.1.11 · Gross domestic savings (%)

Percentage of GDP

1.1.10 · Gross domestic savings ($bn)

US$ billions

5

4.0 158,733.1 55 2019

5.5 6.4 35 2019

-2.0 1.3 46 2019


-7.9 8.9 48 2018

-2.38 1.87 48 2018

-47.3 -2.3 57 2018

-14.28 -0.10 59 2018

9.77 3.58 16 2017

3.12 2.38 21 2017

0.45 1.48 38 2017

67.49 287.34 43 2018

20.40 39.75 48 2018

633 13,041 62 2018

-1.78 10.84 62 2018

35.59 78.03 32 2017

11.35 15.50 31 2017

14.11 9.51 16 2017

104.30 340.78 38 2017

2017

6.7 10.6 2017

59.2 63.4 2017

34.1 26.0 2017

61.0 53.1 51 2017

65.5 53.6 48 2017

127.7 337.6 29 2017

40.7 52.1 32 2017

12.78 10.35 38 2017

2017

1.1.25 · Forecast: Current account balance

Percentage of GDP/GNP

1.2 · International Trade

1.1.24 · Forecast: Unemployment

Percentage of total labor force

1.1.23 · Forecast: Inflation

Percentage change


Percentage of total imports

Percentage change, based on US$ values

Percentage of GDP

1.2.22 · Imports breakdown by economic sector

1.2.21 · Imports of goods & commercial services - growth

US$ billions

Top 5 products, percentage of total exports

1.2.20 · Imports of goods & commercial services (%)

1.2.18 · Export concentration by product

Exports to top 5 countries, percentage of total exports

1.2.19 · Imports of goods & commercial services ($bn)

1.2.17 · Export concentration by partner

Percentage of total exports

Exports breakdown by economic sector / Industry



Exports breakdown by economic sector / Services

Exports breakdown by economic sector / Agriculture

US$ billions

1.2.15 · Exports of goods & commercial services



1.2.16 · Exports breakdown by economic sector

1.2.13 · Exports of commercial services (%)

Percentage of GDP

US$ billions

1.2.14 · Exports of commercial services - growth


US$ per capita

1.2.12 · Exports of commercial services ($bn)

Percentage of GDP

1.2.11 · Exports of goods - growth

1.2.10 · Exports of goods per capita

1.2.09 · Exports of goods (%)

Percentage share of world exports (goods and commercial services)

Percentage of GDP

1.2.07 · World exports contribution

1.2.08 · Exports of goods ($bn)

1.2.06 · Balance of commercial services (%)

US$ billions (minus sign = deficit)

1.2.05 · Balance of commercial services ($bn)

Percentage of GDP


US$ billions

1.2.04 · Balance of trade (%)

Percentage of GDP


1.2.03 · Balance of trade ($bn)

1.2.01 · Current account balance ($bn)

1.2.02 · Current account balance

6

9.3 8.2 2017

70.5 67.9 2017

20.2 23.9 2017

36.99 53.12 37 2017

84.0 99.0 50 2018

2.23 3.78 36 2017


3.95 16.70 32 2018

1.19 1.61 31 2018

47.8 484.2 41 2017

15.25 69.51 40 2017

9.80 18.51 29 2018

2.96 1.72 20 2018

78.8 469.5 47 2017

25.12 85.29 51 2017

-5.85 -1.90 45 2018

-1.77 -0.12 39 2018

-31.0 14.7 35 2017

-9.87 -15.79 32 2017

5.09 5.15 36 2019

4.22 25.74 31 2018

3.37 20.50 28 2018


41.16 39.31 10 2018

38.61 47.54 57 2018

2.05 1.34 21 2018

-0.22 3.41 51 2018

2018

24.3 8.7 2018


International tourism receipts as a percentage of GDP

1.3 · International Investment

1.4 · Employment

Unit value of exports over unit value of imports

1.2.25 · Tourism receipts

1.3.15 · Portfolio investment liabilities

US$ billions

(Exports + Imports) / (2 * GDP)

1.2.24 · Terms of trade index

1.3.14 · Portfolio investment assets

US$ billions

1.2.23 · Trade to GDP ratio

1.3.13 · Relocation threats of business

Relocation of business is not a threat to the future of your economy


1.4.05 · Employment by sector

Percentage of total employment


Imports breakdown by economic sector / Services

1.3.12 · Net position in direct investment stocks (%)

Percentage of GDP (stocks abroad minus stocks inward)

Percentage of GDP

Imports breakdown by economic sector / Industry

1.3.11 · Net position in direct investment stocks ($bn)

US$ billions (stocks abroad minus stocks inward)

1.3.02 · Direct investment flows abroad (% of GDP)

Percentage of GDP

1.3.08 · Direct investment stocks inward (% of GDP)

1.3.10 · Balance of direct investment flows (%)

Percentage of GDP (flows abroad minus flows inward)


Imports breakdown by economic sector / Agriculture

1.3.09 · Balance of direct investment flows ($bn)

US$ billions (flows abroad minus flows inward)

1.3.06 · Direct investment flows inward (% of GDP)

Percentage of GDP

Estimates: % of population, percentage change in 4 years

1.3.07 · Direct investment stocks inward ($bn)

US$ billions

1.4.04 · Employment - long-term growth

Employment by sector / Agriculture

1.3.05 · Direct investment flows inward ($bn)

US$ billions

1.3.03 · Direct investment stocks abroad ($bn)

US$ billions

1.3.04 · Direct investment stocks abroad (% of GDP)

Percentage of GDP

1.4.03 · Employment - growth

Total employment in millions

1.4.01 · Employment

1.3.01 · Direct investment flows abroad ($bn)

US$ billions

1.4.02 · Employment (%)

Percentage of population

Estimates: percentage change

7

19.1 23.9 2018

56.6 67.4 2018

8.70 17.65 8 2017

5.30 6.57 32 2018

0.08 2.33 4 2018

14.15 15.42 37 2018

21.7 12.3 54 2017


5.21 14,761.73 57 2018

69.70 81.10 15 2018

730 1,525 9 2018

278 603 10 2017

41.74 18.38 58 2017

1.03 1.29 19 2018

Share of youth population (15-24) not in education, employment or training

Premium unleaded gasoline (95 Ron) US$ per litre

1.5 · Prices

1.5.06 · Gasoline prices

Percentage of youth labor force (under the age of 25)

1.5.05 · Food costs

Percentage of household final consumption expenditures

Percentage of labor force

1.5.04 · Office rent

Percentage of labor force

1.4.10 · Youth exclusion

Total occupation cost in the main city (US$/Sq.M. per year)

1.5.03 · Apartment rent


1.4.09 · Youth unemployment

3-room apartment monthly rent in major cities, US$

1.5.02 · Cost-of-living index

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


1.4.06 · Employment in the public sector

1.4.08 · Long-term unemployment

1.5.01 · Consumer price inflation


1.4.07 · Unemployment rate

Average annual rate

Employment by sector / Industry

Employment by sector / Services

8


-3.27 -35.78 35 2018

-0.99 -1.56 32 2018

131.02 1,075.60 25 2018

39.60 59.51 24 2018

3.94 4.23 41 2018

27.42 38.21 25 2018

14.44 19.01 34 2018

12.25 5.89 53 2018

4.58 4.70 30 2019

3.23 4.73 51 2019

3.81 4.22 34 2019

19.6 35.1 6 2018


15.87 27.08 14 2017

2.47 5.89 15 2017

3.72 3.04 46 2017

4.12 9.78 7 2017

0.59 1.39 21 2017

1.63 7.12 14 2017

5.35 16.65 8 2018

30.00 23.10 51 2018

12.00 16.28 16 2018

5.35 9.27 17 2018

10.84 16.56 21 2018

5.98 5.17 20 2019

2.1 · Public Finance

2.2 · Tax Policy

2.1.01 · Government budget surplus/deficit ($bn)

US$ billions

2.1.03 · Total general government debt ($bn)

US$ billions

2.1.05 · Total general government debt-real growth


2.1.06 · Central government domestic debt

Percentage of GDP

2.1.07 · Central government foreign debt

Percentage of GDP

2.2.08 · Corporate tax rate on profit


2 · Government Efficiency

Maximum tax rate, calculated on profit before tax

2.2.09 · Consumption tax rate

Standard rate of VAT/GST

2.2.10 · Employee's social security contribution rate

Compulsory contribution as a percentage of an income equal to GDP per capita

2.2.11 · Employer's social security contribution rate

Compulsory contribution as a percentage of an income equal to GDP per capita

Percentage of GDP

2.2.12 · Real personal taxes

Real personal taxes do not discourage people from working or seeking advancement

2.1.04 · Total general government debt (%)

Percentage of GDP

2.1.12 · General government expenditure

Percentage of GDP

2.1.02 · Government budget surplus/deficit (%)

PHILIPPINES

Pension funding is adequately addressed for the future

Public finances are being efficiently managed

2.1.08 · Interest payment (%)

Percentage of current revenue

2.1.09 · Public finances

2.1.10 · Tax evasion

Tax evasion is not a threat to your economy

2.1.11 · Pension funding

2.2.06 · Collected social security contribution

Compulsory contribution of employees and employers as a percentage of GDP

2.2.07 · Effective personal income tax rate

Percentage of an income equal to GDP per capita

2.2.02 · Collected personal income tax

On profits, income and capital gains, as a percentage of GDP

2.2.04 · Collected indirect tax revenues

Taxes on goods and services as a percentage of GDP

2.2.05 · Collected capital and property taxes

Percentage of GDP

2.2.03 · Collected corporate taxes

On profits, income and capital gains, as a percentage of GDP

Percentage of GDP

2.2.01 · Collected total tax revenues

9


-1.36 -1.53 23 2018

5.05 5.49 44 2019

3.00 3.89 34 2018

36.0 42.5 42 2018

7.51 6.30 6 2019

79.19 185.59 27 2018

743 6,963 55 2018

0.129 0.076 59 2018

4.55 5.09 37 2019

4.35 4.42 29 2019

3.58 4.68 45 2019

2.51 3.59 44 2019

1.29 4.66 55 2019

0.47 0.65 47 2018


6.31 5.96 47 2017

5.04 5.83 45 2019

5.36 6.06 46 2019

3.81 6.93 62 2019

5.51 6.52 47 2019

5.35 5.92 45 2019

0.78 1.18 18 2018

5.06 5.45 46 2019

5.88 6.04 38 2019

5.09 5.77 45 2019

4.53 4.94 36 2019

0.3 5.9 55 2016

5.79 6.46 46 2019

31.0 14.9 59 2018

2.3 · Institutional Framework

2.4 · Business Legislation

2.3.13 · Bribery and corruption

Bribery and corruption do not exist

2.3.14 · Rule of law

Rule of Law Index

2.3.11 · Transparency

Transparency of government policy is satisfactory

2.3.12 · Bureaucracy

Bureaucracy does not hinder business activity

2.3.10 · Adaptability of government policy

2.4.12 · New business density

2.3.08 · Exchange rate stability

Parity change from national currency to SDR, 2018 / 2016

2.3.09 · Legal and regulatory framework

The legal and regulatory framework encourages the competitiveness of enterprises

2.3.07 · Foreign currency reserves per capita

US$ per capita

2.3.02 · Cost of capital

2.3.03 · Interest rate spread

Lending rate minus deposit rate

2.3.04 · Country credit rating

Adaptability of government policy to changes in the economy is high

2.4.14 · Start-up days

Index (0-60) of three country credit ratings: Fitch, Moody's and S&P

2.3.05 · Central bank policy

Central bank policy has a positive impact on the economy

Registered new businesses per 1'000 people aged 15-64

US$ billions

2.4.06 · Investment incentives

Investment incentives are attractive to foreign investors

2.4.07 · Government subsidies

To private and public companies as a percentage of GDP

2.4.13 · Creation of firms

Creation of firms is supported by legislation

2.3.06 · Foreign currency reserves

2.4.11 · Parallel economy

Parallel (black-market, unrecorded) economy does not impair economic development

2.3.01 · Real short-term interest rate

Real discount / bank rate

Cost of capital encourages business development

2.4.09 · State ownership of enterprises

2.4.10 · Competition legislation

Competition legislation is efficient in preventing unfair competition

2.4.05 · Capital markets

Capital markets (foreign and domestic) are easily accessible

State ownership of enterprises is not a threat to business activities

2.4.08 · Subsidies

Subsidies do not distort fair competition and economic development

2.4.01 · Tariff barriers

Tariffs on imports: Most favored nation simple average rate

Foreign investors are free to acquire control in domestic companies

2.4.02 · Protectionism

Protectionism of your government does not impair the conduct of your business

2.4.04 · Foreign investors

2.4.03 · Public sector contracts

Public sector contracts are sufficiently open to foreign bidders

10

13.0 6.0 62 2018

4.70 5.24 44 2019

4.00 5.01 49 2019

6.14 5.83 20 2019

23.1 9.4 54 2018


3.95 5.68 48 2019

11.0 4.6 58 2016

4.9 14.3 6 2018

4.33 5.79 44 2019

5.20 5.46 35 2019

40.10 35.20 44 2017

3.20 2.73 2015

29.50 26.89 2015

- 0.28

5.88 6.06 40 2019

29.10 25.22 22 2017

1.03 1.38 27 2018

0.427 0.189 59 2017

70.7 71.1 39 2018

Female / male ratio

2.5 · Societal Framework

2.5.14 · Disposable Income

2.5.13 · Gender inequality

Gender Inequality Index (UNDP)

Difference between the female and male unemployement rates

2.5.12 · Unemployment rate - gender ratio

2.5.08 · Income distribution - highest 10%

Percentage of household incomes going to highest 10% of households

2.5.11 · Females in parliament

Percentage of total seats in Parliament

2.5.10 · Equal opportunity

Equal opportunity legislation in your economy encourages economic development

2.5.09 · Income share held by lowest 60% - growth

Percentage change of household incomes going to lowest 60% of households

2.5.06 · Gini coefficient

Equal distribution of income scale: 0 (absolute equality) to 100 (absolute inequality)

2.4.18 · Immigration laws

Immigration laws do not prevent your company from employing foreign labor

2.4.19 · Redundancy costs

Number of weeks of salary

Number of days to start a business

2.5.07 · Income distribution - lowest 10%

Percentage of household incomes going to lowest 10% of households

2.5.04 · Risk of political instability

The risk of political instability is very low

2.5.05 · Social cohesion

Social cohesion is high

2.4.15 · Start-up procedures

Number of procedures to start a business

2.4.16 · Labor regulations

Labor regulations (hiring/firing practices, minimum wages, etc.) do not hinder business activities

2.4.17 · Unemployment legislation

Unemployment legislation provides an incentive to look for work

2.5.03 · Ageing of population

Population over 65, percentage of total population

2.5.02 · Homicide

Intentional homicide, rate per 100'000 population

2.5.01 · Justice

Justice is fairly administered

11


21,300 79,104 61 2018

3.69 1.36 9 2018

9.91 44.82 60 2018

8,829 49,157 55 2018

37,398 100,569 59 2018

24,487 78,649 60 2018

6.56 6.14 23 2019

6.93 6.69 26 2019

4.86 6.03 51 2019

5.79 6.07 36 2019


1.23 13.64 2 2018

1.06 2.23 13 2017

12,791 28,097 17 2018

5,749 18,893 2018

2,552 18,792 2018

5,571 30,286 2018

50,045 48,626 2018

8,456 29,496 2018

4,370 22,488 2018

152,973 168,492 29 2018

218,560 304,252 2018

186,284 148,688 2018

64,457 79,567 2018

142,591 141,460 2018

50.01 17.63 60 2018

3.1 · Productivity & Efficiency

3.2 · Labor Market

3.1.01 · Overall productivity (PPP)

Estimates: GDP (PPP) per person employed, US$

3.1.03 · Labor productivity (PPP)

Estimates: GDP (PPP) per person employed per hour, US$

3.1.05 · Productivity in industry (PPP)

Estimates: Related GDP (PPP) per person employed in industry, US$

3.1.07 · Workforce productivity

Workforce productivity is competitive by international standards

PHILIPPINES

3 · Business Efficiency

Estimates: Percentage change of GDP (PPP) per person employed

3.1.04 · Agricultural productivity (PPP)

Estimates: Related GDP (PPP) per person employed in agriculture, US$

3.1.06 · Productivity in services (PPP)

Estimates: Related GDP (PPP) per person employed in services, US$

3.1.10 · Use of digital tools and technologies

Companies are very good at using digital tools and technologies to improve performance

3.1.02 · Overall productivity (PPP) - real growth

3.1.08 · Large corporations

Large corporations are efficient by international standards

3.1.09 · Small and medium-size enterprises

Small and medium-size enterprises are efficient by international standards


3.2.05 · Remuneration spread

Remuneration of management / Engineer

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

Remuneration of management / Human resources director


Remuneration of management / Director manufacturing


Remuneration in services professions / Sales Assistant

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

Remuneration in services professions / Secretary / Personal


3.2.04 · Remuneration of management


Remuneration of management / CEO


Remuneration in services professions / Product Manager


Remuneration in services professions / Nurse


Remuneration in services professions / Primary school teacher


3.2.01 · Compensation levels

3.2.03 · Remuneration in services professions

Gross annual income including supplements such as bonuses, US$

Remuneration in services professions / Call center agent


Total hourly compensation in manufacturing (wages + supplementary benefits), US$

3.2.02 · Unit labor costs for total economy

Percentage change

12

2,149 1,838 9 2018

5.93 5.85 29 2019

0.47 11.29 17 2017

4.63 5.03 39 2019

6.21 5.94 27 2019

43.46 41.32 9 2018

40.77 50.35 60 2018

1.60 0.98 19 2018

-1.59 1.59 58 2018

33.80 14.17 2 2017

37.91 43.01 55 2018

0.11 14.71 46 2017

7.01 5.41 3 2019

6.33 6.27 33 2019

7.05 6.75 30 2019

3.72 4.88 47 2019

5.21 5.36 32 2019

5.49 5.61 31 2019

6.12 5.46 21 2019


94.68 145.18 41 2018

1.42 3.39 48 2018

1,476 10,482 58 2018

34.50 82.69 61 2017

1.29 0.96 1 2017

6.51 6.09 29 2019

6.63 6.78 38 2019

5.65 5.54 32 2019

249.7 1,066.4 32 2018

3.3 · Finance

3.2.24 · Competent senior managers

Competent senior managers are readily available

3.2.22 · Foreign highly-skilled personnel

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

3.2.23 · International experience

International experience of senior managers is generally significant

Attracting and retaining talents is a priority in companies

3.2.20 · Attracting and retaining talents

3.2.21 · Brain drain

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


3.2.18 · Skilled labor

Skilled labor is readily available

3.2.19 · Finance skills

Finance skills are readily available

3.2.16 · Female labor force


3.2.17 · Foreign labor force

3.2.15 · Part-time employment


3.2.13 · Labor force growth

Percentage change

3.2.14 · Labor force long-term growth

Estimates: % of population, percentage change in 4 years

3.3.08 · Stock markets

Stock markets provide adequate financing to companies

3.3.09 · Stock market capitalization ($bn)

US$ billions

3.3.03 · Financial card transactions

Percentage of population

3.2.12 · Labor force (%)

3.2.11 · Labor force

Employed and registered unemployed (millions)

3.3.06 · Banking and financial services

Banking and financial services do support business activities efficiently

3.3.02 · Financial cards in circulation

US$ per capita

3.2.09 · Apprenticeships

Average number of working hours per year

3.2.07 · Worker motivation

Worker motivation in companies is high

3.2.08 · Industrial disputes

Working days lost per 1,000 inhabitants per year (average 2015-2017)

3.2.06 · Working hours

3.3.01 · Banking sector assets

Apprenticeships are sufficiently implemented

3.2.10 · Employee training

Employee training is a high priority in companies

3.3.05 · Access to financial services - gender ratio

Difference between the female and male access to a bank account or mobile-money-service provider

3.3.07 · Regulatory compliance (banking laws)

Regulatory compliance is sufficiently developed

Ratio of CEO to personal assistant remuneration

Percentage of GDP

Number of cards per capita

3.3.04 · Access to financial services

Proportion of adults with a bank account or mobile-money-service provider

13

75.48 79.72 23 2018

274 17,733 42 2018

264 707 25 2017

-1.31 6.10 50 2018

6.40 6.73 39 2019

539.7 2,955.1 35 2018

5.66 5.88 40 2019

4.42 5.13 43 2019

0.262 1.163 46 2017

5.95 5.85 31 2019


5.86 5.95 34 2019

6.84 6.58 23 2019

6.14 6.02 28 2019

6.42 6.03 20 2019

6.33 6.03 26 2019

6.88 7.16 38 2019

4.78 5.07 39 2019

6.92 6.88 33 2019

5.49 5.94 46 2019

5.84 5.84 31 2019

51.50 31.70 1 2017

10.70 18.25 39 2018


6.68 6.37 25 2019

5.08 6.22 45 2019

7.47 6.68 14 2019

7.63 6.55 6 2019

6.05 5.79 31 2019

3.4 · Management Practices

3.5 · Attitudes and Values

3.4.09 · Entrepreneurship

Entrepreneurship of managers is widespread in business

3.4.10 · Social responsibility

Social responsibility of business leaders is high

3.3.19 · Corporate debt

Corporate debt does not restrain the ability of enterprises to compete

Credit is easily available for business

3.3.17 · Venture capital

3.3.18 · M&A Activity

Deals per listed company (average 2015-2017)

3.3.13 · Stock market index

3.4.08 · Customer satisfaction

Customer satisfaction is emphasized in companies

3.4.11 · Women in management

Female share of senior and middle management (% of management)

3.4.12 · Women on boards

Boardmembers of all companies analyzed by MSCI

Venture capital is easily available for business

3.3.16 · Credit

Number of listed domestic companies

3.3.11 · Value traded on stock markets

US$ per capita

3.3.10 · Stock market capitalization (%)

Percentage of GDP

3.4.04 · Credibility of managers

Credibility of managers in society is strong

3.4.05 · Corporate boards

Corporate boards do supervise the management of companies effectively

3.4.03 · Opportunities and threats

Companies are very good at responding quickly to opportunities and threats

3.4.06 · Auditing and accounting practices

Auditing and accounting practices are adequately implemented in business

3.4.07 · Use of big data and analytics

Companies are very good at using big data and analytics to support decision-making

3.4.02 · Changing market conditions

Companies are generally extremely aware of changing market conditions

3.4.01 · Agility of companies

Companies are agile

3.3.12 · Listed domestic companies

3.5.05 · Need for economic and social reforms

The need for economic and social reforms is generally well understood

3.5.04 · Flexibility and adaptability

Flexibility and adaptability of people are high when faced with new challenges

The national culture is open to foreign ideas

3.5.02 · Image abroad or branding

The image abroad of your country encourages business development

3.5.03 · National culture

3.5.01 · Attitudes toward globalization

Attitudes toward globalization are generally positive in your society

Percentage change on index in national currency

Shareholders' rights are sufficiently implemented

3.3.14 · Shareholders' rights

3.3.15 · Initial Public Offerings

By acquiror nation (average 2016-2018) US$ millions

14

5.48 5.66 36 2019

6.07 6.16 37 20193.5.07 · Value system

The value system in your society supports competitiveness

3.5.06 · Digital transformation in companies

Digital transformation in companies is generally well understood

15


300 1,478 32 2018

1,060 3,111 46 2016

4,757 19,246 28 2014

5.28 8.00 60 2019

5.23 6.60 53 2019

106.60 83.80 9 2018

1.60 0.79 12 2018

31.5 18.9 2018

4.9 14.3 2018

57.2 50.2 57 2018

0.72 1.22 33 2016

0.000 0.047 60 2017

44,087 62,185 23 2017

5.56 7.12 55 2019

4.38 7.07 59 2019

5.02 7.09 57 2019

28.46 178.96 33 2016

51.9 106.0 40 2016

31.64 125.73 32 2016

0.31 2.43 1 2016

0.144 0.103 47 2018


0.59 0.47 15 2018

53.6 75.4 51 2017

2.7 16.6 4 2017

4.67 7.71 62 2019


PHILIPPINES

4 · Infrastructure

4.1.02 · Arable area

Square meters per capita

4.1.04 · Access to water

Access to water is adequately ensured and managed

4.1.06 · Population - market size

Estimates in millions

4.1 · Basic Infrastructure

4.2 · Technological Infrastructure

4.1.01 · Land area

Square kilometers ('000)

4.1.03 · Water resources

4.1.21 · Electricity costs for industrial clients

US$ per kwh

Total internal renewable per capita in cubic meters

4.1.05 · Management of cities

Management of cities supports business development

4.1.07 · Population - growth

Percentage change

4.1.20 · Total final energy consumption per capita

MTOE per capita

4.1.19 · Total final energy consumption

Millions MTOE

4.1.17 · Total indigenous energy production

Millions MTOE

4.1.18 · Total indigenous energy production (%)

Percentage of total requirements in tons of oil equivalent

4.1.16 · Energy infrastructure

Energy infrastructure is adequate and efficient

4.1.13 · Air transportation

Number of passengers carried by main companies, thousands

4.1.14 · Quality of air transportation

Quality of air transportation encourages business development

4.1.15 · Distribution infrastructure

The distribution infrastructure of goods and services is generally efficient

4.1.11 · Roads

Density of the network, km roads/square km land area

4.1.12 · Railroads

Density of the network, km per square km

Population under 15 and over 64 years old, divided by active population (15 to 64 years)

4.1.09 · Population over 65 years

Percentage of total population

4.1.10 · Dependency ratio

4.1.08 · Population under 15 years


4.2.02 · Mobile Broadband subscribers

3G & 4G market, % of mobile market

4.2.03 · Mobile Telephone costs

Monthly Blended Average Revenue per User

4.2.04 · Communications technology

Percentage of GDP

4.2.01 · Investment in Telecommunications

16

0.81 1.35 20 2017

207 713 59 2017

436 736 58 2017

61 369 61 2017

5.2 18.5 49 2018

6.16 6.91 48 2019

6.60 6.49 33 2019

5.86 5.96 35 2019

5.91 6.41 46 2019

4.47 5.88 53 2019

32,114 31,268 15 2017

57.68 13.58 1 2017

63.6 27.3 3 2017

4.84 5.80 49 2019


515 25,527 51 2017

0.16 1.46 59 2017

4.9 557.5 62 2017

157 18,988 54 2017

0.05 0.97 59 2017

27.8 204.5 41 2017

0.26 4.57 57 2017

9.7 150.9 46 2017

0.09 2.78 58 2017

0.2 3.2 56 2015

33.41 34.67 34 2014

1,569 34,843 53 2016

0 9 29 2018

0.00 0.19 29 2018

4.3 · Scientific Infrastructure

4.2.18 · Cyber security

Cyber security is being adequately addressed by corporations

4.2.17 · ICT service exports

Percentage of service exports

4.2.16 · High-tech exports (%)

Percentage of manufactured exports

Awarded in physics, chemistry, physiology or medicine and economics since 1950 per million people

4.2.14 · Funding for technological development

Funding for technological development is readily available

4.2.15 · High-tech exports ($)

US$ millions

4.2.13 · Development and application of technology

Development and application of technology are supported by the legal environment

4.3.11 · Science degrees

Percentage of total first university degrees in science and engineering

4.3.12 · Scientific articles

4.3.14 · Nobel prizes per capita

4.2.07 · Internet users

Number of internet users per 1000 people/ Source: Computer Industry Almanac

Public and private sector ventures are supporting technological development

Digital/Technological skills are readily available

4.2.10 · Digital/Technological skills

4.2.11 · Qualified engineers

Qualified engineers are available in your labor market

4.2.12 · Public-private partnerships

4.2.09 · Internet bandwidth speed

Average speed

4.3.13 · Nobel prizes

Awarded in physics, chemistry, physiology or medicine and economics since 1950

Scientific articles published by origin of author

4.2.08 · Broadband subscribers

Number of subscriptions per 1000 inhabitants

4.2.06 · Computers per capita

Number of computers per 1000 people/ Source: Computer Industry Almanac

4.3.10 · Researchers in R&D per capita

Full-time work equivalent (FTE) per 1000 people

4.2.05 · Computers in use

Worldwide share/ Source: Computer Industry Almanac

Full-time work equivalent (FTE thousands)

4.3.09 · Total R&D personnel in business per capita


4.3.05 · Business expenditure on R&D (%)

Percentage of GDP

4.3.06 · Total R&D personnel

Full-time work equivalent (FTE thousands)

Communications technology (voice and data) meets business requirements

4.3.07 · Total R&D personnel per capita

4.3.08 · Total R&D personnel in business enterprise


4.3.01 · Total expenditure on R&D ($)

US$ millions

4.3.03 · Total expenditure on R&D per capita ($)

US$ per capita

4.3.04 · Business expenditure on R&D ($)

US$ millions

4.3.02 · Total expenditure on R&D (%)

Percentage of GDP

17

508 51,847 49 2017

0.48 82.67 62 2017

142 22,349 55 2017

0.6 341.1 61 2017

45.95 37.98 20 2015

4.82 5.85 46 2019

4.81 6.53 56 2019

4.65 5.34 41 2019


4.4 7.4 53 2016

130 2,339 61 2016

31.54 66.07 61 2016

4.02 5.72 45 2019

58 74 59 2015

69.2 78.2 61 2017

61.9 69.5 59 2018

28.1 8.2 60 2017

53 2016

116.91 209.15 2016

763.55 485.47 2016

52 76 2018

0.699 0.851 60 2017

104 127 26 2016

5.0 76.7 48 2017

276.73 41.11 46 2016

114.8 448.2 34 2016

376.5 440.1 40 2016

18.19 20.11 42 2016

34.1 15.9 7 2016

17.5 1.4 1 2015

4.4 · Health and Environment

4.3.22 · Knowledge transfer

Knowledge transfer is highly developed between companies and universities

4.3.21 · Intellectual property rights

Intellectual property rights are adequately enforced

4.3.20 · Scientific research legislation

Laws relating to scientific research do encourage innovation

4.3.15 · Patent applications

Number of applications filed by applicant's origin

4.3.16 · Patent applications per capita

Number of applications filed by applicant's origin, per 100,000 inhabitants

4.3.19 · Medium- and high-tech value added

Proportion of total manufacturing value added, expressed as a percentage

4.3.18 · Number of patents in force

by applicant's origin, per 100,000 inhabitants

4.3.17 · Patent grants

Number of patents granted by applicant's origin (average 2014-2016)

4.4.09 · Medical assistance

Number of inhabitants per physician and per nurse

Medical assistance / Per nurse

4.4.07 · Healthy life expectancy

4.4.04 · Health infrastructure

Health infrastructure meets the needs of society

4.4.05 · Universal health care covereage index

4.4.06 · Life expectancy at birth

Average estimate

Average estimate

4.4.17 · Exposure to particle pollution

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

4.4.18 · Renewable energies (%)

Share of renewables in total energy requirements, %

4.4.19 · Forest area growth

4.4.16 · CO2 emissions intensity

CO2 emissions from fuel combustion in metric tons per one million US$ of GDP

4.4.14 · Water consumption intensity

Water withdrawal for each 1000 US$ of GDP in cubic meters

4.4.15 · CO2 emissions

Metric tons of carbon dioxide from fuel combustion


4.4.13 · Waste water treatment plants

Percentage of population served

4.4.01 · Total health expenditure

Percentage of GDP

4.4.02 · Total health expenditure per capita

US$ per capita

Medical assistance / Per physician

4.4.12 · Energy intensity

Total energy consumed for each 1000 US$ of GDP in MTOE


4.4.08 · Infant mortality

Under five mortality rate per 1000 live births

Index (0-80) measuring coverage of essential health services

4.4.03 · Public expenditure on health (%)

Percentage of total health expenditure

4.4.10 · Urban population


4.4.11 · Human development index

Combines economic - social - educational indicators/ Source: Human Development Report

18

0.57 3.96 54 2015

1.2 5.4 1 2015

-0.58 -1.44 21 2015

0.03 1.59 47 2015

78.19 83.39 45 2015

5.58 6.08 38 2019

3.29 5.77 60 2019

5.02 6.22 58 2019

4.99 6.70 49 2019


3.5 4.6 49 2017

106 1,418 61 2017

10.1 21.1 56 2016

268 6,115 62 2014

29.30 16.25 59 2016

24.70 13.79 58 2016

65.9 89.5 60 2015

20.8 41.6 54 2015

20.0 37.9 49 2015

0.14 3.14 56 2016

0.16 2.42 62 2017

- 476

- 475

- 478

89 89 35 2017

5.42 6.00 43 2019

6.16 6.29 35 2019

6.58 6.31 29 2019

1.75 31.72 58 2018

4.5.16 · Management education

Management education meets the needs of the business community

4.5 · Education

4.5.17 · University education index

Country score calculated from Times Higher Education univesity ranking

4.5.15 · University education

University education meets the needs of a competitive economy

4.5.14 · Primary and secondary education

Primary and secondary education meets the needs of a competitive economy

4.5.13 · English proficiency - TOEFL

TOEFL scores

Educational assessment - PISA / Sciences

PISA survey of 15-year olds

4.5.10 · Student mobility inbound

Foreign tertiary-level students per 1000 inhabitants

Educational assessment - PISA / Mathematics


4.5.11 · Student mobility outbound

National tertiary-level students studying abroad per 1000 inhabitants

4.5.12 · Educational assessment - PISA


4.5.07 · Secondary school enrollment

Percentage of relevant age group receiving full-time education

4.5.09 · Women with degrees

Share of women who have a degree in the population 25-65

Percentage of population that has attained at least tertiary education for persons 25-34

4.4.27 · Environmental laws

Environmental laws and compliance do not hinder the competitiveness of businesses

4.4.28 · Quality of life

Quality of life is high

4.5.08 · Higher education achievement

4.5.06 · Pupil-teacher ratio (secondary education)

Ratio of students to teaching staff

Ratio of students to teaching staff

4.5.05 · Pupil-teacher ratio (primary education)

4.4.25 · Sustainable development

Sustainable development is a priority in companies

4.4.26 · Pollution problems

Pollution problems do not seriously affect your economy

4.5.04 · Total public expenditure on education per student

Spending per enrolled pupil/student, all levels

4.4.24 · Environmental agreements

Multilateral agreements on hazardous waste, proportion fulfilled

4.5.03 · Gov. expenditure on education per student

Percentage of GDP per capita (secondary education)

Development of environment-related technologies, % inventions worldwide

4.5.02 · Total public expenditure on education per capita

US$ per capita

4.5.01 · Total public expenditure on education

Percentage of GDP

4.4.21 · Ecological footprint

Global hectares per person

4.4.22 · Ecological balance (reserve/deficit)

Total biocapacity minus total footprint in global hectares per capita

4.4.23 · Environment-related technologies

4.4.20 · Total biocapacity

Global hectares per capita of biologically productive space

Five year percentage change of hectares

19

3.7 2.7 48 2015

7.79 6.31 16 2019

4.5.18 · Illiteracy

Adult (over 15 years) illiteracy rate as a percentage of population

4.5.19 · Language skills

Language skills are meeting the needs of enterprises

20

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COUNTRY PHILIPPINES PROFILE · PHILIPPINES. OVERALL PERFORMANCE (63 countries) Rank. Manila. CHALLENGES IN 2019. Need to speed up and sustain investments in physical infrastructure