Hong Kong Climbs to Second in Global Competitiveness Ranking

Hong Kong has advanced to second place in the 2026 World Competitiveness Ranking published by the International Institute for Management Development (IMD), marking its highest position since 2019 and building on three consecutive years of improvement. The ranking underscores Hong Kong's sustained performance across key competitiveness factors, particularly in government efficiency and business legislation.

A spokesperson for the Hong Kong Special Administrative Region (HKSAR) Government welcomed the report, stating, "The World Competitiveness Yearbook (WCY) 2026 reaffirms Hong Kong as one of the most competitive economies in the world, and notes that Hong Kong's rise to second sustains the strong upward trajectory from 2024 and 2025." The IMD noted that amid rising geopolitical tensions, competitive advantage hinges on credible institutions, predictable rules, enforceable commitments, and public trust.

According to WCY 2026, Hong Kong's rise reflects consistent performance across the four competitiveness factors measured. It ranks second in "Government efficiency" and third in "Business efficiency," while "Infrastructure" and "Economic performance" rank eighth and 11th respectively. In sub-factors, Hong Kong tops the rankings in "Tax policy" and "Business legislation," ranks second in "Finance," third in "International trade," "International investment," "Management practices," and "Education," and fourth in "Public finance" and "Basic infrastructure."

The spokesperson highlighted that Hong Kong's second-place ranking in government efficiency reflects the HKSAR Government's ongoing efforts to promote free, open, stable, predictable, and business-friendly economic policies, as well as international trust in Hong Kong's legal and regulatory environment. The third-place ranking in business efficiency demonstrates strong support for industry development through a robust financial ecosystem and alignment with international best standards.

Amid rapidly evolving geopolitical dynamics, Hong Kong's close connectivity to both the Chinese Mainland and the world under the "one country, two systems" principle, combined with sound institutions, open markets, and sustained investments in innovation, has positioned it as a "value hub" offering both security and growth opportunities. Hong Kong continues to excel in various international rankings, including those for economy, finance, and talent. The International Monetary Fund has given positive recognition to Hong Kong in recent months, and major credit rating agencies have reaffirmed Hong Kong's credit ratings and 'stable' outlook.

The spokesperson noted that Hong Kong is currently formulating its first Five-Year Plan to proactively align with the National 15th Five-Year Plan. "With the staunch support of our country, the HKSAR Government will work together with all sectors of society to strengthen our role and function as a 'super connector' and 'super value-adder', with a view to better integrating into and serving the overall national development, achieving our own high-quality development, creating more new room for development for our people and businesses, as well as opening up new opportunities for global investors and enterprises," the spokesperson said.