Hong Kong Rises to World's Second Most Competitive Economy in 2026

Hong Kong has climbed to the second most competitive economy in the world, according to the 2026 World Competitiveness Ranking released by the International Institute for Management Development (IMD). This marks Hong Kong's highest ranking since 2019 and reflects three consecutive years of improvement. The HKSAR Government spokesperson welcomed the report, highlighting that the World Competitiveness Yearbook (WCY) 2026 reaffirms Hong Kong's strong upward trajectory. The IMD noted that amid rising geopolitical tensions, competitive advantage now hinges on credible institutions, predictable rules, enforceable commitments, and public trust.

In the WCY 2026, Hong Kong excels across all four competitiveness factors, ranking second in 'Government efficiency' and third in 'Business efficiency,' while placing eighth in 'Infrastructure' and 11th in 'Economic performance.' Among sub-factors, Hong Kong tops the world in 'Tax policy' and 'Business legislation,' ranks second in 'Finance,' and third in 'International trade,' 'International investment,' 'Management practices,' and 'Education.' The spokesperson attributed these results to the HKSAR Government's efforts to promote free, open, stable, and business-friendly policies, as well as international trust in Hong Kong's legal and regulatory environment. Hong Kong's 'Business efficiency' ranking reflects strong support from its 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 innovation investments, has positioned it as a 'value hub' offering security and growth opportunities. The city continues to excel in international rankings for economy, finance, and talent, with recent positive recognition from the IMF and major credit rating agencies reaffirming its credit ratings and 'stable' outlook. As Hong Kong formulates its first Five-Year Plan to align with the National 15th Five-Year Plan, the spokesperson emphasized that the HKSAR Government will work with all sectors to strengthen its role as a 'super connector' and 'super value-adder,' integrating into national development and creating new opportunities for people, businesses, and global investors.