Hong Kong has secured the second-most globally competitive economy ranking, its strongest performance in seven years, according to a comprehensive survey released Thursday by the Switzerland-based International Institute for Management Development. The city climbed one spot from last year to place behind Singapore among 70 economies surveyed, demonstrating resilience in key economic metrics that matter to businesses and investors.
Hong Kong was surpassed only by Singapore but ranked ahead of Switzerland and Taiwan, signaling the continued strength of market-oriented Asian economies. The ranking places Hong Kong ahead of 68 other economies, underscoring the city's sustained appeal as a hub for international commerce and finance.
Asian Economic Leadership
The International Institute for Management Development said Hong Kong's rise to second place was built on three consecutive years of improvement and "reinforced the dominance of Asian economies at the top of the ranking." This consistent upward trajectory reflects the region's commitment to business-friendly policies and efficient governance structures that attract capital and talent.
The city's overall performance marked a rebound from 2023, when it was ranked No. 7, and matched its No. 2 position in 2019. The improvement demonstrates Hong Kong's ability to recover from recent challenges and maintain its competitive edge in the global marketplace. In 2017, it was ranked No. 1 among 63 economies, establishing a benchmark the city continues to pursue.
Four Pillars of Success
The report said the city's rise reflected sustained performance across the four competitiveness factors measured: government efficiency, infrastructure, economic performance and business efficiency. These metrics capture the essential elements that enable private enterprise to thrive—from regulatory streamlining to physical connectivity to market dynamism.
Government efficiency measures how effectively public institutions support business activity without imposing unnecessary burdens. Infrastructure evaluates the physical and technological foundations that facilitate commerce. Economic performance tracks market outcomes and growth indicators. Business efficiency assesses how well companies can operate and compete in the marketplace.
The balanced strength across all four categories suggests Hong Kong has maintained the institutional framework and market conditions that have historically made it attractive to international businesses seeking a gateway to Asian markets. The ranking provides quantifiable evidence that Hong Kong remains competitive despite regional challenges and shifting global economic conditions.
Why This Matters:
Hong Kong's improved competitiveness ranking carries significant implications for businesses, investors, and policymakers evaluating the city's role in the global economy. The second-place finish validates Hong Kong's continued viability as a financial center and trading hub, directly affecting investment decisions and capital flows into the region. For businesses considering Asian expansion, the ranking provides concrete data supporting Hong Kong's infrastructure quality, regulatory efficiency, and market performance. The three-year improvement trend suggests sustained institutional strength rather than temporary gains, offering reassurance to long-term investors. The dominance of Asian economies at the top of the ranking reflects a broader shift in global economic gravity toward market-oriented policies in the region, with Hong Kong exemplifying how government efficiency and business-friendly environments drive competitiveness in an increasingly interconnected world economy.