Hong Kong has advanced one spot to become the world's second most competitive economy, according to the 2026 World Competitiveness Ranking published by the Swiss-based International Institute for Management Development (IMD) on June 18. This marks Hong Kong's highest ranking since 2019 and continues an upward trend over the past three years.
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 globally and notes that the rise to second place sustains a strong trajectory from 2024 and 2025.
The IMD highlighted that amid rising geopolitical tensions, competitive advantage now depends on credible institutions, predictable rules, enforceable commitments, and public trust. Hong Kong's performance across the four competitiveness factors—Government efficiency, Business efficiency, Infrastructure, and Economic performance—was cited as the reason for its climb. Hong Kong ranked second in Government efficiency, third in Business efficiency, eighth in Infrastructure, and 11th in Economic performance.
Among sub-factors, Hong Kong topped the rankings in Tax policy and Business legislation, placed second in Finance, third in International trade, International investment, Management practices, and Education, and fourth in Public finance and Basic infrastructure.
The HKSAR Government spokesperson attributed the high ranking in Government efficiency to 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 reflects strong support for industry development from a robust financial ecosystem and alignment of business practices with international standards.
Under the "one country, two systems" principle, Hong Kong's close connectivity with mainland China and the world, combined with sound institutions, open markets, and sustained investments in innovation, has positioned it as a "value hub" offering both security and growth opportunities. The spokesperson noted that 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 recently, and major credit rating agencies have reaffirmed its credit ratings with a "stable" outlook.
Currently, Hong Kong is formulating its first Five-Year Plan to align with the National 15th Five-Year Plan. The spokesperson emphasized that with the country's support, the HKSAR Government will work with all sectors to strengthen Hong Kong's role as a "super connector" and "super value-adder," integrating into national development and creating new opportunities for local and global businesses.
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