Competitiveness Soars
Hong Kong Climbs to Second Globally in Competitiveness, Its Highest Ranking Since 2019
Anonymous
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In the IMD World Competitiveness Yearbook 2025 release, Hong Kong was ahead of 68 of the 70 economies surveyed, and IMD said the result “reinforced the dominance of Asian economies at the top of the ranking.” The article also notes the turnaround history: Hong Kong rebounded from No 7 in 2023, matched its No 2 position from 2019, and had been No 1 (out of 63) in 2017.
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WCY 2026 detail beyond the headline rank: Hong Kong placed 2nd globally in “Government efficiency” and 3rd in “Business efficiency,” but also landed at 8th in “Infrastructure” and 11th in “Economic performance.” On sub-factors, it ranked 3rd globally in “International trade,” “International investment,” “Management practices,” and “Education,” and 4th in “Public finance” and “Basic infrastructure.”
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Hong Kong’s government spokesperson linked the rankings to specific policy and legal-regulatory claims, saying the “Government efficiency” 2nd-place result reflects the HKSAR Government’s efforts to promote “free and open, stable, predictable and business-friendly economic policies,” along with “the international community's trust in Hong Kong's legal and regulatory environment.” For “Business efficiency” (3rd), the spokesperson said it reflects “our robust financial ecosystem” and “the seamless alignment of the city's business practices and environment with international best standards.”
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In QS World University Rankings 2027, The Chinese University of Hong Kong (CUHK) rose 14 places to 18th—entering the global top 20 for the first time—and recorded its best performance since the QS rankings began in 2010.
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City University of Hong Kong (CityUHK) advanced 11 places to 52nd and also posted a standout metric: it ranked second globally in “citations per faculty,” behind only Harvard University, and was first in Asia and Hong Kong for the second consecutive year—highlighting research strength.
Hong Kong has secured second place in the IMD World Competitiveness Yearbook 2026, its highest ranking in seven years and the third consecutive year of gains, South China Morning Post reported. The city trails only Singapore and sits ahead of Switzerland, Denmark, and Taiwan among 70 economies surveyed.
The result caps a sharp rebound from a low of 7th place in 2023. Hong Kong was ranked No. 1 globally as recently as 2017, slipped during political unrest and strict COVID-19 restrictions, and has now climbed back to levels last seen in 2019, according to Dagong News.
Hong Kong Tops Tax and Business Law Rankings Globally
Hong Kong ranked 2nd globally in government efficiency and 3rd in business efficiency in WCY 2026, according to Bastille Post. On specific sub-factors, it claimed 1st place in both tax policy and business legislation — meaning no economy scores better on those two measures.
The city also ranked 2nd in finance, 3rd in international trade, international investment, management practices, and education, and 4th in public finance and basic infrastructure. Its weaker spots were infrastructure overall at 8th and economic performance at 11th, EQS News noted.
Government Credits Legal Stability and Open Economic Policies
An HKSAR Government spokesperson linked the 2nd-place government efficiency result to what the government calls "free and open, stable, predictable and business-friendly economic policies." The spokesperson added that the ranking reflects "the international community's trust in Hong Kong's legal and regulatory environment," according to Bastille Post.
For the 3rd-place business efficiency result, officials cited "our robust financial ecosystem" and "the seamless alignment of the city's business practices and environment with international best standards." In 2025, Hong Kong's IPO fundraising reached HK$259.4 billion, a 228% year-on-year jump, signaling renewed investor confidence.
CUHK Cracks Global Top 20 in University Rankings
One day before the IMD release, the QS World University Rankings 2027 showed Hong Kong's universities also climbing fast. The Chinese University of Hong Kong rose 14 places to 18th globally — its first-ever entry into the top 20 and its best result since QS began tracking rankings in 2010, South China Morning Post reported.
City University of Hong Kong jumped 11 places to 52nd. More striking was its research output: CityUHK ranked 2nd globally in "citations per faculty," behind only Harvard University, and held the No. 1 spot in both Asia and Hong Kong for the second straight year. The University of Hong Kong held steady at a record-high 11th place.
Rankings Mask a Debate Over Freedom Versus Efficiency
Not everyone reads the numbers the same way. IMD Director Arturo Bris has noted that in a fragmented global economy, competitive advantage now depends on "credible institutions" and "public trust." Pro-government analysts say the No. 2 ranking disproves the "Hong Kong decline" narrative entirely.
Critics argue the rankings focus on business metrics while overlooking civic freedoms. New Article 23 rules enacted in March 2026 criminalized refusing to hand over passwords to police, prompting alerts for international firms. Human Rights Watch has also raised concerns that university rankings measure citations, not academic freedom. The IMD itself warned Hong Kong must still manage "intensifying geopolitical tensions" and an aging workforce that could weigh on future scores.
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