Hong Kong has advanced one place to become the world's second most competitive economy, according to the 2026 World Competitiveness Ranking released by the International Institute for Management Development (IMD). This marks the city's highest ranking since 2019 and continues a three-year upward trend.
The World Competitiveness Yearbook (WCY) 2026 highlights that amid rising geopolitical tensions, competitive advantage now hinges on credible institutions, predictable rules, enforceable commitments and public trust. Hong Kong's rise reflects sustained performance across all four competitiveness factors measured: government efficiency, business efficiency, infrastructure, and economic performance.
In detail, Hong Kong ranks second globally in "Government efficiency" and third in "Business efficiency." Its "Infrastructure" and "Economic performance" stand at eighth and 11th respectively. Among sub-factors, Hong Kong tops the rankings 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."
A spokesperson for the Hong Kong Special Administrative Region (HKSAR) Government welcomed the report, stating, "The WCY 2026 reaffirms Hong Kong as one of the most competitive economies in the world, and notes that Hong Kong's rise to second sustains the strong upward trajectory from 2024 and 2025." The spokesperson added that the high rankings in government efficiency reflect the government's 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 third-place ranking in business efficiency underscores the robust financial ecosystem and alignment with international best standards.
Under the "one country, two systems" principle, Hong Kong maintains close connectivity with both the Chinese Mainland and the world, positioning itself as a "value hub" that offers both security and growth opportunities. The city has also excelled in other international rankings for economy, finance, and talent. The International Monetary Fund has given positive recognition to Hong Kong, and major credit rating agencies have reaffirmed its credit ratings with a "stable" outlook. The spokesperson noted, "All these echo the WCY 2026 results."
Currently, Hong Kong is formulating its first Five-Year Plan to align with the National 15th Five-Year Plan. "With the staunch support of our country, the HKSAR Government will work together with all sectors of society to strengthen our role and function as a 'super connector' and 'super value-adder', with a view to better integrating into and serving the overall national development, achieving our own high-quality development, creating more new room for development for our people and businesses, as well as opening up new opportunities for global investors and enterprises," the spokesperson said. For more information, visit Brand Hong Kong.
