Singapore leapfrogs Hong Kong and US to become world’s most competitive economy
- Advanced tech infrastructure, skilled workers, favourable immigration laws and other factors propel city to No 1 spot on IMD Business School’s annual rankings
- US falls two spots to third place as confidence boost from tax cuts fades and hi-tech exports weaken, while Hong Kong remains second
Singapore leapfrogged Hong Kong and the US to take the top spot among the world’s most competitive economies for the first time in nine years.
The city state’s advanced technological infrastructure, availability of skilled workers, favourable immigration laws, and efficiency for starting businesses supported its rise to the No 1 spot, the Switzerland-based IMD Business School said in its annual rankings.
The US fell two spots to third place as the confidence boost from tax cuts faded and high-technology exports weakened.
Asia-Pacific economies performed particularly well, with 11 of 14 in the region either improving or maintaining their rankings. Hong Kong, in second place, was credited with a “benign tax and business policy environment” and access to business finance.
In a year of high uncertainty in global markets due to rapid changes in the international political landscape as well as trade relations, the quality of institutions seem to be the unifying element for increasing prosperity
“In a year of high uncertainty in global markets due to rapid changes in the international political landscape as well as trade relations, the quality of institutions seem to be the unifying element for increasing prosperity,” Arturo Bris, director of the IMD World Competitiveness Centre that compiles the ranking, said in a statement.