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COMPETITIVENESS TRENDS - OVERALL

PHILIPPINES
OVERALL PERFORMANCE 08 40 43 09 10 39 11 41 12 BASIC FACTS
Capital
2 Land area (km '000)

Rank Manila 300.0 (2010) 43.31 (2011) 93.74 (2011) 224.8 (2011) 4,096 (2011) 3.7 (2011) 4.4 (2011) 7.0 (2011) 39.98 (2011) 3.1 (2011) 9 41 58 25 42 27 10 20

Exchange rate (per $)

43

Population (millions) GDP ($ billions)

CHALLENGES IN 2012
• Maximize the favorable economic environment to implement political and economic reforms. • Induce positive impact of economic growth on human development and employment. • Encourage more investments and further develop the export industry. • Improve the business environment, mitigate disaster risks and strengthen government-private sector cooperation. • Fast-track the development of physical, institutional, and social infrastructure in support of meeting the challenges.
Employment Prices Public Finance

GDP (PPP) per capita ($) Real GDP growth (%) Consumer Price Inflation (%) Unemployment rate (%) Labor force (millions) Current Account Balance (%) Direct Investment Stocks Inward ($ billions) Flows Inward (% of GDP)

Domestic Economy

International Trade

International Investment

24.9 (2010) 0.6 (2011)

54 52

Provided by : Asian Institute of Management Policy Center

Fiscal Policy

Institutional Framework

COMPETITIVENESS LANDSCAPE
ECONOMIC PERFORMANCE

Business Legislation

Societal Framework

GOVERNMENT EFFICIENCY
11 17
Finance

Productivity & Efficiency

BUSINESS EFFICIENCY
1

INFRASTRUCTURE

Labor Market

Management Practices

22

Attitudes and Values

20 27 29 46 50

Basic Infrastructure

Tech. Infrastructure

32 44 54 55 Employment Fiscal Policy International Investment Prices

36

Scientific Infrastructure

38

49

Health and Environment

Education

55 Labor Market Business Legislation Finance Societal Framework Attitudes and Values Productivity & Efficiency Public Finance Institutional Framework Management Practices

56 Basic Infrastructure Tech. Infrastructure

58 Health and Environment Scientific Infrastructure

57 Education

Domestic Economy

PEER GROUP RANKINGS
ASIA PACIFIC POPULATIONS > 20 MILLION

International Trade

08 12

09 13

10 13

11 13

12 13

08 16

09 18

10 18

11 19

12

20

214

IMD WORLD COMPETITIVENESS YEARBOOK 2012

65 0.12 47.1.4.3.2.3.04 4.63 4.3 4.3.40 6.60 1.3 0 10 20 30 40 50 60 70 80 90 100 IMD WORLD COMPETITIVENESS YEARBOOK 2012 215 .1.80 3.01 1.62 3.55 0.38 4.00 62.06 4.01 1.2.75 KEY ATTRACTIVENESS INDICATORS From a list of 15 indicators.6 63.35 3.3.2 47.37 4.50 7.05 3.84 4.3.7 4. respondents of the Executive Opinion Survey were asked to select 5 that they perceived as the key attractiveness factors of their economy.1.06 1.10 3.01 2.47 25.8 9.1 10.8 0.8 107.42 3. The chart shows the percentage of responses per indicator from the highest number of responses to the lowest.03 2. Skilled workforce Open and positive attitudes High educational level Cost competitiveness Dynamism of the economy Business-friendly environment Policy stability & predictability Access to financing Quality of corporate governance Effective labor relations Reliable infrastructure Competency of government Strong R&D culture Competitive tax regime Effective legal environment 91.00 0.4.12 2.02 2.4.4.11 2.02 Number of patents in force Tax evasion (Survey) Stock market capitalization (%) Bribing and corruption (Survey) Government budget surplus/deficit (%) Bureaucracy (Survey) Customs' authorities (Survey) Transparency (Survey) Parallel economy (Survey) Foreign currency reserves ($bn) Relocation threats of production (Survey) Justice (Survey) Access to water (Survey) Future energy supply (Survey) Cost of capital (Survey) WCY 2011 1.11 6.88 -2.09 1.05 4.7 20.12 2.15 1.01 5.5.02 2.1.1.04 2.4 16.8 2.3.61 3.36 5.06 4.1.62 7.4 91.45 DECLINES 2.4 65.1.27 3.18 60.3.3.6 7.02 1.2.82 1.8 0.07 Government subsidies (%) Direct investment flows abroad (%) Direct investment flows abroad ($bn) Real GDP growth per capita Real GDP growth Public finances (Survey) Current account balance (%) Exports of goods (%) Consumer price inflation Terms of trade index Direct investment flows inward (%) Business expenditure on R&D (%) Pollution problems (Survey) Investment risk Effective personal income tax rate WCY 2011 0.14 2.15 21.7 4.18 -3.13 76.02 1.22 1.22 5.84 2.60 3.3.49 1. They are determined by the largest percentage changes in the value of each criterion from one year to the next.5.17 2.67 WCY 2012 56.23 0.0 24.3.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.01 4.1 16.13 2.68 6.3 28.70 53.31 0.56 0.10 5.3.4 60.3.11 WCY 2012 0.09 1.18 78. IMPROVEMENTS 4.13 2.19 2.61 4.9 4.24 3.2.4 19.10 2.3.17 3.03 4.08 1.44 5.

FACTOR BREAKDOWN PHILIPPINES ECONOMIC PERFORMANCE 08 09 10 34 42 51 11 29 42 12 Sub-Factor Rankings : Domestic Economy International Trade International Investment Employment Prices 2011 40 18 56 33 12 2012 44 55 54 22 17 GOVERNMENT EFFICIENCY 08 09 10 31 41 37 42 11 12 32 Sub-Factor Rankings : Public Finance Fiscal Policy Institutional Framework Business Legislation Societal Framework 2011 41 13 44 51 31 2012 32 11 36 49 38 BUSINESS EFFICIENCY 08 09 10 11 12 26 31 32 32 31 Sub-Factor Rankings : Productivity & Efficiency Labor Market Finance Management Practices Attitudes and Values 2011 43 5 34 36 26 2012 55 1 29 27 20 INFRASTRUCTURE 08 48 56 56 57 55 09 10 11 12 Sub-Factor Rankings : Basic Infrastructure Technological Infrastructure Scientific Infrastructure Health and Environment Education 2011 57 32 58 50 57 2012 56 46 58 50 57 216 IMD WORLD COMPETITIVENESS YEARBOOK 2012 .COMPETITIVENESS TRENDS .

11 Fixed broadband tariffs 4.2.2.21 GDP (PPP) per capita 1.02 Current account balance (%) 1.2.01 Investment in telecommunications (%) 4.4.3.4.05 Mobile telephone costs 4.4.06 Unemployment rate 3 7 8 11 15 17 20 25 26 27 WEAKNESSES Economic Performance 1.5.2.3.5.5.03 Credibility of managers (S) 3.23 Competent senior managers (S) 3.4.3.1.13 Relocation threats of production (S) 1.09 Computers per capita 4.11 Educational system (S) 1 1 13 15 18 20 20 24 25 31 Infrastructure 4.05 Foreign investors (S) 2.2.03 Pupil-teacher ratio (primary education) 4.05 Central bank policy (S) 2.13 University education (S) 4.16 Start-up procedures 2.06 Direct investment flows inward (%) 1.14 Real GDP growth 1.19 Resilience of the economy (S) 1.03 Ageing of society (S) 2.4.1.04 Total general government debt (%) 7 10 11 12 13 15 19 20 21 23 Government Efficiency 2.5.3.5.4.1.1.08 Direct investment stocks inward (%) 1.05 Secondary school enrollment (%) 4.3.01 Overall productivity (PPP) 3.3.04 Pupil-teacher ratio (secondary education) 4.03 Remuneration in services professions ($) 3.21 Foreign high-skilled people (S) 57 57 51 50 48 44 42 42 41 39 Infrastructure 4.2.4.FACTOR BREAKDOWN PHILIPPINES STRENGTHS Economic Performance 1.03 Fixed telephone tariffs 4.14 Management education (S) 4.2.5.2.2.2.05 Direct investment flows inward ($bn) 58 58 54 54 54 54 52 52 50 49 Government Efficiency 2.22 High-tech exports (%) 4.4.13 Stock market index (%) 3.3.20 Redundancy costs 2.5.4.04 Country credit rating 2.1.3.12 Labor force (%) 3.06 Gini index 2.16 Language skills (S) 4.4.20 GDP per capita 1.02 Direct investment flows abroad (%) 1.04 Corporate boards (S) 3.3.1.3.12 Broadband subscribers 4.5.2.5.2.01 Total health expenditure (%) 59 58 58 57 57 57 57 56 56 56 IMD WORLD COMPETITIVENESS YEARBOOK 2012 217 .BALANCE SHEET .02 Customs' authorities (S) 2.4.2.15 Female labor force (%) 3.2.02 Cost-of-living index 1.10 Small and medium-size enterprises (S) 3.03 Direct investment stocks abroad ($bn) 1.04 Flexibility and adaptability (S) 3.2.5.07 Direct investment stocks inward ($bn) 1.2.14 Relocation threats of R&D facilities (S) 1.2.3.2.3.5.01 Banking sector assets (%) 3.2.4.4.2.2.3.07 Long-term unemployment 1.2.2.08 Government subsidies (%) 2.01 Collected total tax revenues (%) 2.10 Employee's social security contribution rate 2.10 Dependency ratio 4.12 Real personal taxes (S) 2.15 Qualified engineers (S) 4.09 Consumption tax rate 2.1.14 Information technology skills (S) 4.24 Exchange rates (S) 1.01 Total public expenditure on education (%) 4.11 Employer's social security contribution rate 2.15 Start-up days 2.2.2.02 Image abroad (S) 3.5.03 Protectionism (S) 2.4.08 Corporate tax rate on profit 58 55 53 53 52 50 47 47 46 45 Business Efficiency 3.1.5.07 Effective personal income tax rate 2.04 Direct investment stocks abroad (%) 1.04 Investment risk 3.04 Labor productivity (PPP) 3.20 Brain drain (S) 3.03 National culture (S) 3.08 Youth unemployment 1.10 Internet users 4.2.2.01 Compensation levels ($) 3.01 Direct investment flows abroad ($bn) 1.1.5.5.3.07 Corporate values (S) 2 2 2 4 7 9 12 13 13 15 Business Efficiency 3.11 Competition legislation (S) 2.17 Skilled labor (S) 3.3.