Nation

Hong Kong Rockets to Third Place in Global Competitiveness Rankings for 2025!

2025-06-25

Author: Chun

In a stunning leap, Hong Kong has secured its position as the world’s third most competitive economy, according to the World Competitiveness Yearbook 2025 released by the Swiss International Institute for Management Development (IMD) on June 17, 2025. This remarkable achievement marks the city's highest rank since 2019 and is its second consecutive year of climbing two spots, now trailing only behind powerhouse rivals Singapore and Switzerland among 69 economies surveyed.

The IMD's comprehensive evaluation highlights Hong Kong's impressive strengths across all four key competitiveness factors: government efficiency (2nd), business efficiency (2nd), economic performance (6th), and infrastructure (7th). These advancements are a testament to the city’s strategic initiatives aimed at attracting private investment, all while navigating a turbulent global economic environment.

A Business-Friendly Powerhouse

For over two decades, Hong Kong has maintained its coveted place in the global top 10, underscoring its irresistible appeal to entrepreneurs. In 2024, the city registered a record-shattering 145,053 new local companies, boosting the total to an astounding 1,460,494 entities. Additionally, the number of non-Hong Kong companies newly established reached a historic high of 15,126, emphasizing Hong Kong's status as a premier hub for both domestic and international businesses.

Chief Executive John Lee proudly stated, "This ranking affirms that Hong Kong boasts a world-class business environment full of competitive strengths. Key attributes like robust rule of law, independent judicial power, a straightforward tax regime with attractive rates, a transparent marketplace, and an efficient financial system all contribute to our appeal.

Economic Resilience Amid Global Uncertainty

In spite of the backdrop of geopolitical tensions and economic uncertainties, Hong Kong's economy is thriving. The city recorded a 3.1% year-on-year GDP growth in the first quarter of 2025, with a projected full-year growth between 2% and 3%. Its stock market also exemplifies this robust health, enjoying a staggering 24% year-on-year rise in market capitalization, exceeding US$5.2 trillion by May 30, 2025. Moreover, the Hong Kong Stock Exchange has led the charge among global exchanges in initial public offerings (IPOs), raising nearly HK$79 billion (US$10.12 billion) this year.

Strategic Reforms and Global Connectivity

Hong Kong's rise can be attributed to proactive reforms, such as the newly implemented company re-domiciliation regime launched in May 2025, simplifying the process for businesses wishing to relocate. Major players like AXA Hong Kong and Macau and Manulife (International) Limited are already planning to make the move, signaling strong confidence in Hong Kong’s business ecosystem.

Additionally, the Office for Attracting Strategic Enterprises has proven vital, bringing over 80 strategic firms to the city with an impressive projected investment of HK$50 billion and the potential to create more than 20,000 jobs. This aligns perfectly with Hong Kong's role as a "super-connector" that bridges China and the global market.

Leading in Key Competitiveness Metrics

Hong Kong has dominated in crucial global categories, topping the rankings in “Tax Policy” and “Business Legislation,” while also securing second places in “Education,” “International Investment,” and “Finance” in the WCY 2025 sub-factors. These accolades emphasize the city’s capacity to nurture an atmosphere ripe for innovation, investment, and sustainable growth.

As Hong Kong continues to solidify its status as a premier international financial, trade, and shipping hub, the city’s blend of innovative policies, economic resilience, and global connectivity ensures it remains a top destination for businesses and talent on a worldwide scale. With ongoing reforms and an unwavering commitment to excellence, Hong Kong is set to maintain and even enhance its competitive edge in the global marketplace.