Hong Kong Competitiveness Leaps Into Top Three Amid Efficiency Gains
Hong Kong competitiveness has surged, with the city now ranking third in the latest international index. This leap marks a return to the top three since 2019. Hong Kong’s score rose by 7.7 points to 99.2 out of 100 in the last year, also making it the most considerable improvement among the world’s ten most competitive economies.
Impressive Performance Across Key Domains
The newly published IMD World Competitiveness Yearbook 2025 reveals that administrative effectiveness and operational efficiency are now second only globally. Economic output climbed to sixth, while infrastructure advanced to seventh position. In specialised measures, the city claimed the top spot for tax frameworks and commercial regulations.
Hong Kong stands second in international investment and education. It ranks third for global trade and corporate management standards. These results indicate broad gains across multiple policy areas.
Wider Context and Future Implications
Over the past decade, Hong Kong has consistently diversified its economic base, investing in technology, green finance, and logistics infrastructure. Recent projects, such as the expansion of the airport and the establishment of cross-border innovation hubs, have supported this shift. These investments are likely to further influence next year’s infrastructure ranking.
Maintaining momentum will require continued policy focus on education and sustainable development, experts suggest. While private sector leaders have welcomed the government dialogue, they caution that steady progress will depend on improving housing, cost of living, and talent retention metrics.
Just two economies now rank above Hong Kong: the United States and Switzerland. A United Nations trade report released this week also affirmed the city’s status as a central re-export hub and capital gateway to mainland China.
Conclusion
The rise in Hong Kong competitiveness highlights the city’s ongoing recovery and recalibration of economic strategy. With high rankings in governance, business environment, investment, and education, it has reinforced its position as a global financial and commercial centre.
