Hong Kong Jumps to Second in IMD World Competitiveness Ranking
Hong Kong has risen to second place in the 2024 World Competitiveness Ranking published by the International Institute for Management Development (IMD). The city-state improved from third place in 2023, overtaking Denmark and trailing only Switzerland.
The ranking evaluates 67 economies based on 336 criteria across four factors: economic performance, government efficiency, business efficiency, and infrastructure. Hong Kong scored particularly high in government efficiency and business efficiency, ranking first in both categories.
Key Factors Behind Hong Kong's Rise
The IMD report highlights Hong Kong's strong fiscal position, low tax rates, and business-friendly environment as key drivers of its competitiveness. The city also benefited from a rebound in tourism and trade after the pandemic. According to the report, "Hong Kong's recovery in international trade and investment has been robust, supported by its role as a gateway between mainland China and global markets."
However, the ranking also notes challenges, including geopolitical tensions and the need to diversify its economy beyond finance and trade.
Comparison with Other Economies
Switzerland retained the top spot for the second consecutive year, while Singapore dropped from first to third. The United States ranked 12th, China 14th, and the United Kingdom 20th. The report cited that smaller economies tend to perform better due to their agility and adaptability.
The IMD World Competitiveness Center has been publishing the ranking since 1989. It is widely used by governments and businesses to assess economic policies and investment climates.
