Philippines leaps 8 places in global economic freedom index

MANILA, Philippines - The Philippines jumped by eight notches in the Heritage Foundation's 2014 Index of Economic Freedom released on Tuesday.

The country, which made strides in seven out of ten indicators of economic freedom, leaped from 97th in 2013 to 89th in 2014, considered moderately free among the 186 countries included in the global ranking. The economies were ranked according to rule of law (property rights, freedom from corruption), limited government (fiscal freedom, government spending), regulatory efficiency (business freedom, labor freedom, monetary freedom) and open markets (trade freedom, investment freedom, financial freedom). The countries were scored from 0 to 100, the average score of 10 indicators.

Hong Kong, Singapore, Australia, Switzerland, New Zealand and Canada led the list as free economies, while Eritrea, Venezuela, Zimbabwe, Cuba and North Korea placed at the bottom as repressed economies.

Among countries in the Association of Southeast Asian Nations, the Philippines was ahead of Indonesia (100th), Cambodia (108th), Laos (144th), Vietnam (147th) and Burma (162nd) and behind Singapore (2nd), Malaysia (37th), Brunei Darussalam (40th) and Thailand (72nd).

"It is worth noting that the data used in the 2014 Index were based mostly on 2012 statistics. We believe that there have been significant improvements since then despite the challenges we had to overcome as one nation. The positive results of this evaluation only strengthen our administration’s resolve to continue implementing reforms founded on good governance and true public service, which are necessary prerequisites to fostering lasting and inclusive growth in the Philippines," the government said in response to the country's rank.

Washington-based Heritage Foundation also commended the country's "high degree of resilience" and legislative reforms that were put in place “to enhance the investment environment and incentivize broader-based private-sector job growth.”