Hong Kong was ranked seventh most competitive economy by the International Institute for Management Development in its World Competitiveness Yearbook 2021, compared to fifth last year.

Among the four competitiveness factors, Hong Kong continued to rank top in government efficiency, while its rankings in economic performance, business efficiency and infrastructure were slightly lower than those in the previous report.

On sub-factors, Hong Kong continued to top the ranking in business legislation. Its rankings in international trade, tax policy, finance and management practices also remained in the top-three positions globally.

The Government said the yearbook continues to recognise Hong Kong’s strengths in various aspects.

It said as a small and open economy, the city has faced unprecedented challenges over the past couple of years. Yet it is confident that Hong Kong's institutional strengths, including the rule of law and independence of the judiciary, free trade and investment regimes, a simple and low tax system, a favourable business environment and an efficient government, remain unscathed.

On top of upholding Hong Kong’s institutional strengths, the Government is committed to enhancing the city’s status as international financial, transportation and trade centres, and developing the city into an international innovation and technology hub, an international aviation hub and a green city.

Meanwhile, it will step up investment in infrastructure, and innovation and technology, to add growth impetus to Hong Kong’s development.

Looking forward, the Government said economies in Asia, particularly the Mainland economy, will continue to be the engine of global economic growth.

Under “one country, two systems”, Hong Kong will continue to play its unique roles as a gateway, a springboard and an intermediary, and actively integrate into the new national overall development.

The city will also capture the opportunities arising from the National 14th Five-Year Plan and national development plans such as the Greater Bay Area development and the Belt & Road Initiative.

The Government said it has every confidence in Hong Kong’s long-term economic development and competitiveness.