HK slips to fifth in global economic competitivenessLocal | 16 Jun 2020 7:28 pm
Hong Kong has been ranked fifth in International Institute for Management Development's World Competitiveness Ranking this year – a slip of three places from second last year.
The institute said the decline can be attributed to a decline in its economic performance, social turmoil in the city as well as the rub-on effect of the Chinese economy. But, the 2020 rankings do not pick up on events in from the last couple of months.
Singapore occupied the top spot for the second consecutive year.
The factors behind the city-state’s success are its strong economic performance which stems from robust international trade and investment, employment and labor market measures, IMD said.
Stable performances in both its education system and technological infrastructure – telecommunications, internet bandwidth speed and high-tech exports – also play key roles.
Denmark and Switzerland occupied second and third place, respectively, followed by the Netherlands.
A marked pattern in this year’s results, which are an amalgam of hard data taken from 2019 and survey responses from early 2020, is the strength of smaller economies, the institute noted.
“The benefit of small economies in the current crisis comes from their ability to fight a pandemic and from their economic competitiveness. In part these may be fed by the fact it is easy to find social consensus,” said Arturo Bris, Director of the IMD World Competitiveness Center and Professor of Finance.
The United States, the world's largest economy, failed to fight back for the second year in a row, having been toppled from its number one spot last year by Singapore, and coming in at 10th. It was ranked third last year.
The institute said trade wars have damaged both China and the U.S.'s economies, reversing their positive growth trajectories.
China this year dropped to 20th position from 14th last year.