Hong Kong's global competitiveness has risen for a third consecutive year, up one place to second globally this year, the highest since 2019, in the World Competitiveness Yearbook (WCY) 2026, published by the International Institute for Management Development (IMD).

In terms of the yearbook’s four competitiveness indicators, Hong Kong ranks second globally in government efficiency, third in business efficiency, eighth in infrastructure, and 11th in and economic performance.

With regard to sub-factors, Hong Kong tops the rankings in tax policy and business legislation, ranks second globally in finance, third globally in international trade, international investment, management practices and education, and fourth in public finance and basic infrastructure.

The Government said that the WCY 2026 reaffirms Hong Kong as one of the most competitive economies in the world, noting that Hong Kong's rise to second globally sustains the strong upward trajectory from 2024.

It added that Hong Kong continues to rank second globally in government efficiency, reflecting the Government's ongoing efforts to promote free and open, stable, predictable and business-friendly economic policies, as well as the international community's trust in Hong Kong's legal and regulatory environment.

Hong Kong's business efficiency is ranked third globally, reflecting the strong support for industry development rendered by the city's robust financial ecosystem, as well as the seamless alignment of the city's business practices and environment with international best standards.

The Government added that amid rapidly evolving geopolitical dynamics, Hong Kong, with its close connectivity to both the Chinese Mainland and the world under the “one country, two systems” principle, and its sound institutions, open markets and sustained investments in innovation, has become a value hub that offers both security and growth opportunities.

Hong Kong is currently formulating its first Five-Year Plan at full speed to proactively align with the National 15th Five-Year Plan. The Government said that with the staunch support of central authorities, it will work together with all sectors of society to strengthen the city's functions as a super connector and super value-adder.