Hong Kong’s economy has been crowned the most competitive in the world for the second year in a row despite its slipping performance, according to an annual ranking.
The latest report compiled by The International Institute for Management Development World Competitiveness Centre once again ranked Hong Kong first out of the 63 economies assessed, followed by Switzerland, Singapore and the US.
The institute assessed the economies on four indicators: business efficiency, government efficiency, economic performance, and infrastructure. Hong Kong came first for both business and government efficiency.
However, the city’s economic performance — which was assessed by its trade, investment and employment — dropped from 5th to 11th place.
Anthony Neoh, the former chairman of the Securities and Futures Commission (SFC), told Apple Daily on Wednesday that Hong Kong is being outpaced by China in both finance and business.
While China has been attracting new companies to list by bringing up new trading systems such as the new over-the-counter stock market and the Shanghai Stock Exchange’s strategic emerging industries board, Hong Kong has reached an impasse, Neoh said. The finance expert added that he was worried Hong Kong would completely lose its economic edge to China in the next five to 10 years if it didn’t make strategic changes.
For what it’s worth, the government appears to be unfazed by the drop in economic performance, judging by a self-congratulatory statement which was released yesterday. Finance Secretary Paul Chan celebrated the IMD’s ranking, which he called “a clear recognition” of the city’s “steadfast fiscal discipline, as well as the incessant effort we put into building a favorable business environment and a robust financial system.”
