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  • Dec 18, 2014
  • Updated: 5:55am
NewsHong Kong
ECONOMY

Hong Kong no longer ranked world's most competitive economy

PUBLISHED : Friday, 31 May, 2013, 12:00am
UPDATED : Friday, 31 May, 2013, 5:48am
 

Hong Kong has lost its status as the world's most competitive economy, according to the latest report by the International Institute for Management Development (IMD).

Its overall ranking has dropped to third this year, overtaken by the United States and Switzerland.

The institute's research, which covered 60 economies, shows Hong Kong has performed worse in all four major areas studied - economic performance, government efficiency, business efficiency, and infrastructure.

The biggest fall was seen in economic performance, from fourth last year to eighth.

Singapore was the only other Asian economy in the top 10 as ranked by the institute, a leading global business school based in Switzerland. But the Lion City also fell, from fourth to fifth.

Chinese University economist Dr Andy Kwan Cheuk-chiu said: "The crux of the problems of Hong Kong are high property prices and rents. The business environment is getting worse and this would discourage overseas investors too."

Kwan said the government should consider pursuing new industries to drive growth, instead of depending on the so-called "conventional economic pillars" such as finance, logistics and trade, tourism and professional services.

Secretary for Financial Services and the Treasury Professor Chan Ka-keung attributed Hong Kong's weakening edge partly to the weak growth in major advanced markets. "Our assessment is that the Hong Kong economy, as well as the entire Asian region, has been affected by external factors," he said.

Hong Kong General Chamber of Commerce chairman Chow Chung-kong was satisfied that Hong Kong's ranking was "still very high", despite a slight fall.

But he admitted air pollution was hurting competitiveness and warned of more business closures should standard working hours be put into legislation.

The IMD world competitiveness report came as the latest blow to Hong Kong.

A survey last year by Transparency International - an international corruption watchdog - showed Hong Kong's global graft-free ranking fall two places to 14th. Earlier this month, United States social concern group Freedom House also ranked Hong Kong 72nd in press freedom, down from 71st last year and 70th in 2011.

 

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12

This article is now closed to comments

daily
How can HK still be competitive...........look at all the time that people waste on holding protests, complaining about the mainlanders and having to listen to all that garbage issues from our local government...........just these few things is enough to negatively impact HK's competitiveness........let's not waste time on small things and get back to working on real-life issues.
skywalker
Hong Kong people should stop looking at themselves as being so "top of the world" and "super great"and face the real problems. English is becoming worse and worse here, therefore Mandarin is still on a rather low level, the people are anything else than polite and culturally Hong Kong has really not much to offer compared to London, Paris or New York. The infrastructure is not good enough compared to the high prices one has to pay for everything. Don't blame it on the Mainlanders!!! We should look at ourselves. And attracting other industries takes more long-term focused, clever and committed government initiatives than what this government is doing now.
mcheung
"Hong Kong General Chamber of Commerce chairman Chow Chung-kong was satisfied............ and warned of more business closures should standard working hours be put into legislation."
A classic example of Chinese businessman exploiting his own people.....Cheap labour and slavery!
kazu.nagai.7
It is not strong democracy that has slowed HK down because there's not much of a democracy to speak of. It's destructive politics. I work in Singapore so I hope the Singaporeans don't fall into the same trap. Petty politiking stinks anywhere in the world. In the US, in Japan, in Europe and elsewhere. People all over the world should instead embrace responsible good governance and citizenship
KwunTongBypass
Well, what did we expect? As long as the prevailing attitude is that Hong Kong should learn from, and assimilate to the Mainland, Hong Kong's competitiveness will head in the same direction.
waynewing
All ears to your insightful suggestions other than "to learn from, and assimilate to the Mainland"
Grumbling all the time (no matter it's right or not) accompanied with impotency to actually work a way out, a declining future seems inevitable if this continues.
laurencecheukyingrahamwells
I cannot condone this obsession with economic growth. Peak Oil is happening, and any growth-based economies are going to suffer over the next few decades. It is less than obvious, but so many geologists have observed the phenomenon worldwide and cannot ignore the correlation of the statistics between discovery, production and economic activity.
fuminchu
Sky-rocketing property prices aside, Hong Kong's transformation from a money-spinning business-first town into a politically-charged protest-at-everything-under-the-sun hotbed definitely does not help its competitiveness.
slicead
What baloney. These people make it sound like high property prices is a recent phenomenon. Another useless piece of journalism.
Asynsis
To retain its competitiveness, following nature's example, perhaps Hong Kong's socio-political economy needs to "flow more easily" as described in the new Constructal law of design in nature & culture? This is not only opinion BTW, it's also physics.
More 4 Less. A new optimal design, construction & operations paradigm.
Asynsis Principle-Constructal law Team @ ARUP Foresight & Innovation, London Fri May 3, 2013
****wp.me/p1zCSP-2V via ****twitter.com/ASYNSIS

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