Connect with us

Hi, what are you looking for?


PHL ranks last in Asia-Pacific economic integration

THE PHILIPPINES has fallen behind in economic integration in the Asia-Pacific region as it registered the poorest performance in an index measuring 17 economies’ performance in 2019.

The Pacific Economic Cooperation Council (PECC) in its State of the Region Report 2021-2022 released on Monday said the Philippines’ integration performance “still has the biggest gap behind the regional average, and its convergence ranking remains the lowest amongst all 17 economies in both 2015 and 2019.”

The index measures the degree of economic integration in the region based on trade of goods, investment, and tourism. It also measures convergence in gross domestic product (GDP) per capita, the share of non-agriculture to GDP, the urban resident ratio, life expectancy, and share of education expenses in the gross national income.

“The process of economic integration is commonly defined as the intra-regional freer movement of goods, services, labor, and capital across borders,” PECC said.

The Philippines scored -11.35 in the composite index, behind the 15.61 regional average.

The report said the rankings should not be read as league tables, given that lower rankings may imply that an economy is more oriented globally than regionally.

Recent figures show increasing integration indicating a more frequent exchange of goods, capital, and people among some economies in the Asia-Pacific.

Singapore, Hong Kong, Thailand, Vietnam, and Korea performed best in the 2019 index.

“As the freest business harbors, Singapore and Hong Kong (China) benefit the most from economic integration in trade, investment, and tourism,” PECC said.

PECC said intra-regional trade flows have improved among some economies, including the Philippines.

“Compared to 2015, in 2019 only six out of the 17 included economies show an increase in their intra-regional trade shares: the Philippines, Vietnam, Mexico, Canada, Australia, and New Zealand,” it said.

“Meanwhile, major trading economies, such as China, the United States, Japan, and Korea, have nontrivial decreases, which mainly occurred in 2018 and 2019.”

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said relatively poor Philippine integration might in part have been brought about by restrictions on foreign ownership preventing the country’s regulations from aligning with the region.

“There are also some constraints on the further integration of financial markets such as the need to further harmonize financial market/banking regulations,” he said in a Viber message.

“Competitiveness (is) also relatively lower such as the ease of doing business relative to the other countries.”

UnionBank of the Philippines Chief Economist Ruben Carlo O. Asuncion said the Philippines has been more integrated with the Association of Southeast Asian Nations (ASEAN) than before.

“If we indeed have fallen behind, then, this is the most wonderful opportunity to improve integration efforts (because there are literature affirming the impact of economic integration on economic growth),” he said on Viber.

“This said ‘falling behind’ should be known and heard by our (presidential) candidates so that they will know how to help the country and incorporate it in their respective platforms.” — Jenina P. Ibanez

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!


Editor’s Pick

The prime minister has signalled controls on steel imports that were due to expire this week could be retained. When asked whether this could...

Editor’s Pick

HMRC is missing out on a total of £2.7bn in underpaid VAT, a new study has revealed. HMRC suspects 208 of the UK’s 2,000...

Editor’s Pick

Bowmark Capital, the private equity investor, has backed the buy-out of Cornwall Insight, a leading provider of research, data and analysis to the energy...

Editor’s Pick

Rising diesel prices could soon stop Britain’s fishing crews from setting sail as it becomes too costly to fish, boat captains warned this weekend....

Editor’s Pick

Fewer firms are at risk of failure compared with last year, but smaller companies are struggling to stay afloat after the end of pandemic...

Editor’s Pick

Big Issue Group has revealed its exciting new rebrand and ambitious five-year strategy, which will reflect the organisation’s response to the huge challenges faced...

You May Also Like


BW FILE PHOTO GROSS BORROWINGS by the National Government reached P2.6 trillion as of end-September as it continued to raise funds to respond to...


REUTERS By Luz Wendy T. Noble, Reporter The country’s foreign exchange buffers slightly increased as of end-October as the value of the central bank’s...


COVID-19 has had a significant impact on the mental health of Filipinos across different groups all over the archipelago. From frontline workers, parents balancing...

Financial Advisors

The healthcare ecosystem is one that has thrived on the cusp of scientific progress, benefitting enormously from the winds of change in the technological...

Disclaimer: Respect, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Respect Investment. All Rights Reserved.