Hong Kong has climbed one spot to become the second most competitive economy globally, according to the 2026 World Competitiveness Ranking released on June 18 by the International Institute for Management Development (IMD). This marks Hong Kong's highest ranking since 2019 and represents the third consecutive year of improvement.
A spokesperson for the Hong Kong Special Administrative Region (HKSAR) Government welcomed the report, stating that the World Competitiveness Yearbook (WCY) 2026 reaffirms Hong Kong as one of the most competitive economies in the world. The spokesperson noted that Hong Kong's rise to second place sustains the strong upward trajectory observed in 2024 and 2025.
In announcing the results, the IMD emphasized 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 sustained performance across the four competitiveness factors measured: Government efficiency, Business efficiency, Infrastructure, and Economic performance. Hong Kong ranks second in Government efficiency and third in Business efficiency, while Infrastructure and Economic performance rank eighth and 11th, respectively.
Among the various competitiveness sub-factors, Hong Kong tops the rankings in Tax policy and Business legislation. It 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 the international community's trust in Hong Kong's legal and regulatory environment. Similarly, the third-place ranking in Business efficiency underscores the strong support for industry development provided by Hong Kong's robust financial ecosystem and the seamless alignment of its business practices 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 its 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 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 successively reaffirmed Hong Kong's credit ratings and 'stable' outlook. According to the spokesperson, these achievements echo the WCY 2026 results.
Currently, Hong Kong is formulating its first Five-Year Plan at full speed to proactively align with the National 15th Five-Year Plan. The spokesperson stated that with the staunch support of the country, the HKSAR Government will work with all sectors of society to strengthen its role as a "super connector" and "super value-adder," aiming to better integrate into and serve the overall national development, achieve high-quality development, create new development opportunities for people and businesses, and open up new opportunities for global investors and enterprises.
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