The World Competitiveness Yearbook 2025 (WCY 2025), published (June 17) by the Swiss-based International Institute for Management Development (IMD), assessed 69 economies around the world. Hong Kong made gains in all the factors of competitiveness: “Government efficiency” (second), “Business efficiency” (second) “Economic performance” (sixth), and “Infrastructure” (seventh). The IMD remarked that the gains across all four factors of competitiveness reflect a broad-based approach of Hong Kong to attracting private sector investment.
“The World Competitiveness Yearbook shows that Hong Kong’s scores in overall terms and in many areas have improved, indicating that the Hong Kong Special Administrative Region (HKSAR) Government’s policy directions are on the right course and that various policies have yielded results,” said the HKSAR’s Chief Executive John Lee.
Hong Kong has ranked among the top 10 in the world for over 20 consecutive years, since the WCY 2003.
Hong
Kong
rises
to
World’s
No.3
most
competitive
economy
Mr
Lee
said
the
ranking
also
“affirms
Hong
Kong’s
world-class
business
environment,
reflecting
business
leaders’
positive
views
on
its
competitiveness
and
strengths,
including
the
rule
of
law,
independent
exercise
of
judicial
power,
a
simple
tax
regime
with
low
tax
rates,
an
efficient
and
transparent
market,
a
robust
financial
system,
and
a
facilitating
environment
aligned
with
international
best
practices,
as
well
as
free
flow
of
capital,
information,
goods
and
talent,
which
are
affirmed
by
the
business
community.”
Despite the current uncertain global economic landscape and geopolitical turmoil, Hong Kong recorded solid year-on-year GDP growth of 3.1% in the first quarter of 2025, with full year GDP growth expected to be 2% to 3%.
Totally, 145,053 local companies were newly registered under the Companies Ordinance last year, bringing the overall number of local companies registered to a record high of 1,460,494, at end-2024. Meanwhile, 1,079 newly established non-Hong Kong companies were registered, bringing that overall total to an all-time high of 15,126.
“Under the unique advantages of ‘one country, two systems’, Hong Kong enjoys both the China advantage and the global advantage. We will continue to leverage Hong Kong’s role as a ‘super-connector’ and ‘super value-adder’, strengthen international exchanges and co-operation, expand and deepen regional trade, explore new markets, with a view to building a vibrant economy, striving for development and improving people’s livelihoods on all fronts,” Mr Lee said.
To attract more non-Hong Kong incorporated companies to re-domicile to Hong Kong, the Government launched a new company re-domiciliation regime legislation last month, providing a simple and accessible mechanism for re-domiciliation to Hong Kong.
Already, two insurance companies, AXA Hong Kong and Macau (AXA China Region Insurance Company (Bermuda) Limited) and Manulife (International) Limited have announced plans to re-domicile to Hong Kong under the new regime, subject to regulatory approvals.
Hong Kong is actively driving reforms to strengthen and enhance its position as an international financial, trade, and shipping centre, trawling for businesses and talents. The Office for Attracting Strategic Enterprises has attracted over 80 strategic enterprises to establish offices in Hong Kong, bringing about HK$50 billion total investments in the years to come, and creating over 20,000 jobs.
Among the sub-factors in the WCY 2025, Hong Kong came top for “Tax policy” and “Business legislation” and second for “Education”, “International investment” and “Finance”.
Ranked as a top three global financial centre, Hong Kong’s stock exchange is a key barometer of financial market performance. By May 30, 2025, stock market capitalisation had increased by 24% year-on-year to over US$5.2 trillion.
Notably, the Hong Kong Stock Exchange has seen a surge in initial public offerings (IPOs), with total IPO funds raised reaching nearly HK$79 billion (US$10.12 billion) so far this year, making it the leader among major global exchanges.
Hong
Kong
is
one
of
the
world’s
top
three
ranked
global
financial
centres
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