Hong Kong has advanced to become the world’s second most competitive economy in the 2026 World Competitiveness Ranking released by the International Institute for Management Development (IMD) on June 18. This marks the highest ranking for the city since 2019, building on three consecutive years of improvement.
The ranking, published in the World Competitiveness Yearbook 2026, underscores Hong Kong’s sustained upward trajectory. A spokesperson for the Hong Kong Special Administrative Region (HKSAR) Government welcomed the report, stating it reaffirms Hong Kong’s status as one of the most competitive economies globally. The IMD highlighted that amid rising geopolitical tensions, competitive advantage now hinges on credible institutions, predictable rules, enforceable commitments and public trust.
Hong Kong’s rise reflects strong performance across all four competitiveness factors measured. The city ranks second in ‘Government efficiency’ and third in ‘Business efficiency’, with ‘Infrastructure’ and ‘Economic performance’ at eighth and 11th respectively. In sub-factors, Hong Kong tops the list 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 HKSAR Government spokesperson attributed the high ranking in ‘Government efficiency’ to ongoing efforts to promote free, open, stable and business-friendly economic policies, as well as international trust in Hong Kong’s legal and regulatory environment. The ‘Business efficiency’ ranking reflects strong support from a robust financial ecosystem and alignment with international best standards.
Under the ‘one country, two systems’ principle, Hong Kong’s close connectivity to both the Chinese Mainland and the world, combined with sound institutions, open markets and sustained investments in innovation, has positioned it as a ‘value hub’ offering security and growth opportunities. The city continues to excel in various international rankings for economy, finance and talent. The International Monetary Fund has recently given positive recognition, and major credit rating agencies have reaffirmed Hong Kong’s 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 support from the country, the HKSAR Government will strengthen its role as a ‘super connector’ and ‘super value-adder’, integrating into national development to create new opportunities for local and global investors. More information about Hong Kong’s brand and competitiveness can be found at Brand Hong Kong.
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