PH Continues to be a “Moderately Free” Economy – 2018 IEF Report
06 February 2018 WASHINGTON, D.C.— The Philippines continues to perform significantly better than the global and regional averages in the recent Heritage Foundation 2018 Index of Economic Freedom (IEF) report released in Washington D.C. on 02 February, said Philippine Ambassador to the United States Jose Manuel G. Romualdez.
“The Philippines notes the release of the 2018 Index of Economic Freedom. It clearly indicates the sustainability of Philippine economic growth particularly on the back of serious economic reforms, particularly in ease of doing business and taxation. We are assured that this will enhance continued business and investor confidence, as we implement an ambitious infrastructure development program in the next few years,” said Ambassador Romualdez, in Washington, D.C.
With a score of 65.0 out of 100, the Philippines remains “moderately free” in terms of economic freedom, positioning the country at 61st place among the countries measured in the said index. The Philippines climbed a notch to 13th place from its overall ranking among 43 countries in Asia-Pacific.
According to the Heritage Foundation’s website, economic freedom is “the fundamental right of every human to control his or her own labor and property. In an economically free society, individuals are free to work, produce, consume, and invest in any way they please. In economically free societies, governments allow labor, capital, and goods to move freely, and refrain from coercion or constraint of liberty beyond the extent necessary to protect and maintain liberty itself.”
The IEF is an annual survey of 180 countries published since 1995 by the Heritage Foundation, a Washington-based think-tank. The 2018 Index graded economies based on 12 independent factors called Economic Freedoms.
The Heritage Foundation highlighted the positive developments in the Philippines while at the same time identifying its current set of challenges in obtaining a higher economic freedom ranking . It recognized that the Government has adopted fiscal reforms and that industrial production has been growing rapidly even as agriculture remains a significant part of the economy.
Performance in the economic freedoms relating to government size, regulatory efficiency and open markets generally improved or remained stable. The Philippines improved in the aspects of trade freedom (+4.3); judicial effectiveness (+1.1); fiscal health (+.5); and labor freedom (+.4). Business, investment and financial freedoms remained stable.
However, the Philippine Embassy also pointed out certain observations in the IEF report that do not seem to be supported by the facts on the ground. The report noted that the “rapid decline in the President’s popularity caused investor confidence to wane by the end of 2017.” It also stated that “an absence of entrepreneurial dynamism thwarts development.”
“I wish to note that the latest Pulse Asia survey showed the President’s trust and approval ratings at an all-time high of 80 and 82 percent, respectively. The latest Social Weather Station survey shows that the trust and satisfaction ratings are 83 and 75 percent, respectively,” Ambassador Romualdez said in reaction to the IEF report’s statement on the President’s popularity.
Ambassador Romualdez also referred to the ASEAN Business Outlook Survey 2018 published by the US Chamber of Commerce that showed 70% of those surveyed say that their companies plan to expand in the Philippines, and 85% of respondents expect their companies’ profits to increase in 2018.
“Among all ASEAN Member States, the Philippines scored highest in satisfaction with regard to an adequate and well-trained labor force, and second highest with regard to availability of trained personnel,” he likewise emphasized.
“We believe that there might have been a time-lag in terms of Heritage Foundation receiving the latest and complete information on the President’s approval ratings and the level of business confidence in the Philippines. We will also provide them with a full update on the positive strides that we have taken with respect to developing a dynamic entrepreneurial economy, supported by a robust MSME development program and an innovation start-up eco-system,” Ambassador Romualdez added. END
For more information, visit www.washingtonpe.dfa.gov.ph/ www.philippineembassy-usa.org or https://www.facebook.com/philippinesusa @philippinesusa on Twitter