Hong Kong has beaten 63 other states in the world to become the world most competitive economy. This is the second running year that Hong Kong was ranked ahead of Singapore and Switzerland by the International Institute for Management Development.
The ranking evaluates 4 key indicators to allocate points and compare the different economies. They include government efficiency, economic performance, infrastructure, and country’s business efficiency.
Other countries in the top three positions included Singapore at position 2 and the United States that took position 3. To reach the highly coveted position, Hong Kong did very well in two key indicators;
- Government efficiency
- Business efficiency (check our bank offer)
However, Hong Kong which is a Special Administration Region of China performed poorly in economic performance. This indicator took a nosedive because of the recent slump in trade and employment.
The economic performance dropped 6 positions to 11th position. The infrastructure also took a nosedive and fell one step from position 20 to 21. Infrastructure indicator includes components such as education, science, technology, and environment.
Hong Kong ranking an indicator of economic robustness
Since 1997 when Hong Kong gained its sovereign status from the British, it has progressively worked on building a highly robust economy. The Hong Kong Financial Secretary, Chan Mo-Po argued that the ranking is a clear pointer of the progressive efforts that the administration has put in the financial system and business environment.
Mo-Po is of the view that though Hong Kong has reached the current top status, it has its work cut out to remain at the top. He insists that the administration must put more focus on enhancing the competitive edge, open economy, and robust institutional design.
Since 2013, Hong Kong has always managed the first three positions except in 2014 when the International Institute for Management Development ranked it position 4.
In the Asian region, Hong Kong performance was equally admirable. It hopped 7 great steps to position 18 on improvement in government & business efficiency and Dedication to International trade.
Areas that Hong Kong must revamp to remain at the top
While the ranking is worth celebrating, it is also crucial to highlight areas that Hong Kong did not perform well.
In a separate ranking, digital competitiveness economy, Hong Kong did not perform very well. It dropped to the seventh position far below the US, Switzerland, and Singapore. In his view, Terence Chong of the Chinese University posited that Hong Kong must work on the digital competitiveness or risk losing its competitive edge to other top competitors. Chong is particularly emphatic on the cost of doing business in Hong Kong especially the cost of rent.
The political atmosphere has also changed so much in the last couple of years. Investors want to feel that the current administration is with them, wants them to grow, and is willing to go to an extra mile to drive success. Hong-Kong is improving every day…