Hong Kong is the third-most competitive economy in the world

Hong Kong has been ranked the third-most competitive economy in the world, advancing two spots from last year, according to the 2025 World Competitiveness Yearbook released by the Switzerland-based International Institute for Management Development (IMD) this month. It marks Hong Kong’s first appearance in the top three since 2019.

The report evaluates 69 economies based on economic performance, government efficiency, business efficiency and infrastructure. Hong Kong’s advancement is attributed to improvements across all four areas, with standout strengths in government and business efficiency, where it ranks second globally. 

Switzerland has reclaimed the top spot, while Singapore ranks second. Denmark maintains a strong standing, taking fourth place, one position down from last year. The United Arab Emirates and Taiwan have each climbed two places, ranking fifth and sixth, respectively.

Having secured a top-ten spot for the first time, Qatar is one to watch. Its progress underscores the progress the Gulf region is making in building knowledge-strong economies while maintaining its traditional strengths.

This year’s rankings reflect how nations are responding to an uncertain and ever-changing global economy, where adaptability, effective governance and inclusive policymaking are becoming decisive advantages for long-term competitiveness.

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