[category]
[title]
Hong Kong has officially climbed its way up to second place in the latest World Competitiveness Yearbook (WCY) 2026, marking its highest position since 2019. According to the International Institute for Management Development, the city has spent the last three years steadily scaling the ladder, putting us back on the map as a global powerhouse.
The annual report, compiled by the Swiss-based IMD Business School, evaluates 70 economies by measuring four core pillars: economic performance, government efficiency, business efficiency, and infrastructure. To get the full picture, researchers combine extensive statistical data with executive survey responses to determine how effectively nations manage their resources to generate long-term value.
The report shows that Hong Kong performs exceptionally well in government efficiency and business efficiency, taking second and third place globally. More specifically, the city is hitting top marks for individual sub-factors like tax policy and business legislation, where we officially rank first in the world. We also sit in second place for finance; third in international trade and investment, management practices, and education; and fourth globally in public finance and basic infrastructure.
It is not all perfect news, however, as the broader economic performance category shows a noticeable drop to 11th place. The yearbook also states that our employment sub-factor has fallen two places to 32nd, while the prices sub-factor – in relation to things like office rent and cost-of-living index – falls even further to 70th place.
Climbing the ranks alongside Hong Kong is Singapore, which grabbed the absolute top spot this year. According to the report, this comes as a result of steady performances in governance and infrastructure, with its business efficiency factor making the most transformative shift from eighth to first place.
For those keeping score, here’s the top 10 list for the IMD World Competitiveness Ranking 2026:
- Singapore
- Hong Kong SAR
- Switzerland
- Taiwan
- United Arab Emirates
- Denmark
- Ireland
- Netherlands
- Sweden
- United States
Visit imd.org to find out more about the ranking and other details of the annual report.
Stay in the loop: Sign up for our free Time Out Hong Kong newsletter for the best of the city, straight to your inbox
Recommended stories:
Market Place launches European food fair with rare imports and live tastings
McDonald’s is launching the world’s first chocolate McGriddles in Hong Kong
The Hong Kong government pulls an anti-drug ad after it seems to promote drug use instead