Hong Kong falls to No. 7 in global competitiveness ranking, Switzerland jumps to No. 1

Hong Kong’s competitiveness ranking has dropped for two consecutive years due to the anti-revision movement and the performance of the Hong Kong government. In this year’s annual report of the International Institute for Management Development in Lausanne, Switzerland, Hong Kong’s ranking dropped from the fifth place last year to the seventh place this year; and Singapore, which is competing with Hong Kong in the Asian region, also fell from the top position last year to the fifth place this year. This year, the top of the list is Switzerland, which ranked third last year.

As for the second to fourth ranking, in order, Sweden, Denmark and the Netherlands; Norway ranked sixth, Taiwan from last year’s eleventh place to this year’s eighth, the United Arab Emirates and the United States ranked ninth and tenth respectively.

The International Institute for Management Development (IMD) of Lausanne ranked 64 countries or regions in four categories: economic performance, government efficiency, business efficiency and infrastructure development. Hong Kong ranks first in government efficiency and third in business efficiency, but falls out of the top ten in both infrastructure and economic performance, with the latter ranking 30th. As for the top positions in other categories, Switzerland topped the “infrastructure” list, Denmark ranked first in “business efficiency”, while Singapore took the “economic performance” crown.

In response to Hong Kong’s ranking, a spokesman for the Hong Kong government said that the annual report continues to recognize Hong Kong’s strengths in many areas, and that Hong Kong has faced unprecedented challenges in the past few years, but is confident that Hong Kong’s institutional strengths, including the rule of law and judicial independence, a free trade and investment regime, a simple and low tax system, a good business environment, and an efficient government, have not been affected. Stressing that under one country, two systems, the Hong Kong government is confident in the long-term economic development and competitiveness of Hong Kong.

The Academy said that the best performing economies, as found in this year’s rankings, are characterized by innovative investment, diversification of economic activities, and supportive public policies. The ability of these economies in related areas before the pandemic made them more effective in dealing with the economic impact.