The 2012 Index of World Economic Freedom released on Thursday said among 179 countries rated, the Philippines had the 107th freest economy with a score of 57.1.
The report said the country’s score was 0.9 point higher than last year, attributable in large part to a significant improvement in business freedom.
The index rates countries in 10 categories – labor freedom, business freedom, trade freedom, fiscal freedom, government spending, monetary freedom, investment freedom, financial freedom, property rights and freedom from corruption – and the results are averaged to create an overall score.
Hong Kong with 89.9 points and Singapore (87.5) ranked first and second in the overall standings for the 18th straight year, followed in order by Australia, New Zealand, Switzerland, Canada, Chile, Mauritius, Ireland and the United States.
North Korea at the bottom of the standings had an overall score of one.
The Philippines improved its scores in four of the 10 specific categories (scores the previous year are in brackets): business freedom 54.3 (43.4), labor freedom 51.7 (50.7), monetary freedom 77.1 (76.3) and fiscal freedom 79.1 (78.8).
Its scores dropped in government spending 89.7 (91) and trade freedom 75.5 (77.8) and there were no changes in scores for freedom from corruption, 24; investment freedom, 40; financial freedom, 50; and property rights, 30.
The Philippines ranked 19th out of 41 countries in the Asia-Pacific region.
Its overall score of 57.1 was slightly below the world average of 59.5 and the regional average of 57.5.
The report said the Philippine economy has been on a steady path of economic expansion, with the government pursuing a series of legislative reforms to enhance the entrepreneurial environment and developing a stronger private sector to generate broader-based job growth.
Overall progress has been gradual, but regulatory efficiency has been notably enhanced, the report said.
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