The Philippines’ rise to 47th out of 70 economies in the 2026 IMD World Competitiveness Yearbook marks a notable step forward, but sustaining the momentum will depend on deeper structural reforms, stronger institutions, and accelerated digitalization of government services, according to the Anti-Red Tape Authority (ARTA).
The country climbed four notches from last year, driven by improvements in Business Efficiency, which jumped to 30th from 46th—its best performance since 2017—and a six-place gain in Government Efficiency to 45th, reflecting progress in cutting red tape, simplifying regulations, and improving public service delivery.
ARTA Secretary Ernesto V. Perez said the results show that reform efforts under the Marcos administration are beginning to yield measurable gains, but warned that competitiveness must be continuously reinforced rather than treated as a one-time achievement.
He said initiatives to reduce bureaucratic friction, streamline processes, and digitize government transactions are already strengthening investor confidence and supporting enterprise growth, but need to be scaled up and sustained.
To preserve and expand these gains, ARTA is pushing for faster digital transformation across agencies, expanded one-stop-shop systems, and improved interoperability between government platforms to reduce transaction costs and improve predictability for businesses.
The agency also stressed the need to strengthen institutions, address persistent inefficiencies, upgrade infrastructure support, and ensure consistent implementation of reforms across both national agencies and local government units.
Perez emphasized that competitiveness is a shared responsibility across government and the private sector, noting that meaningful reform requires coordination at all levels. “Competitiveness is not built by one agency alone,” he said. “It is the result of national government agencies, local government units, the private sector, and the public working together to make government more efficient, predictable, and responsive.”
ARTA added that translating improved rankings into tangible economic gains will depend on maintaining reform momentum and ensuring that businesses experience real, day-to-day improvements in service delivery, permitting, and regulatory processes.
