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Hong Kong has risen to third place in the 2025 World Competitiveness Yearbook (WCY), marking its highest position in six years and underscoring renewed global confidence in the city’s business and policy environment.
The ranking by the Swiss-based International Institute for Management Development (IMD), which assessed 69 economies, showed Hong Kong improved across all four key pillars of competitiveness—government efficiency (2nd), business efficiency (2nd), economic performance (6th), and infrastructure (7th).
“The World Competitiveness Yearbook shows that Hong Kong’s scores in overall terms and in many areas have improved, indicating that the HKSAR Government’s policy directions are on the right course and that various policies have yielded results,” said Chief Executive John Lee in a statement.
The city has consistently remained in the top 10 since 2003 but has now climbed two spots for the second consecutive year, a reflection of its broad-based efforts to attract global investment and talent.
Lee added that the ranking “affirms Hong Kong’s world-class business environment,” citing strengths such as the rule of law, judicial independence, low and simple tax regime, efficient markets, and free flow of capital, goods, information, and talent.
Amid global uncertainty, Hong Kong’s economy has maintained resilience. GDP grew 3.1% year-on-year in Q1 2025, with full-year growth expected between 2% and 3%.
Company registrations also hit record highs in 2024, with over 145,000 new local businesses and 1,079 newly established non-Hong Kong companies.
To further bolster its status as a global business hub, the government recently launched a company re-domiciliation regime.
Already, AXA Hong Kong and Macau and Manulife (International) Limited have signaled plans to relocate their domicile to Hong Kong under the new framework, pending regulatory approvals.
The city is also courting strategic investors. Its Office for Attracting Strategic Enterprises has secured over HK$50 billion in future investments and over 20,000 jobs through more than 80 committed enterprises.
Among the top WCY sub-factors, Hong Kong ranked first in “Tax policy” and “Business legislation,” and second in “Education,” “International investment,” and “Finance.”
Its financial markets have also rebounded strongly. The Hong Kong Stock Exchange saw a 24% year-on-year rise in market capitalization to over US$5.2 trillion as of May 30, 2025.
IPO activity surged as well, with nearly HK$79 billion (US$10.12 billion) raised—leading all major global exchanges.
“Under the unique advantages of ‘one country, two systems,’ Hong Kong enjoys both the China advantage and the global advantage,” Lee said. “We will continue to strengthen international exchanges, expand regional trade, and build a vibrant economy to improve people’s livelihoods on all fronts.”
Business News Asia