Hong Kong has been ranked as the world's second most competitive economy by the International Institute for Management Development in its World Competitiveness Yearbook 2018.

The Government welcomed the report, reiterating it is committed to enhancing the competitiveness and vibrancy of Hong Kong’s economy.

In a statement it said: "Amid the fierce competition from other economies, it is of utmost importance for us to consolidate Hong Kong's competitive edges, including the fine tradition of the rule of law, an open and free market, an efficient public sector, and a robust institutional framework.  

“The Government will strive to develop innovation and technology as the new engine of economic growth. Substantial resources have been allocated in recent years to upgrade technological infrastructure, build a vibrant ecosystem for startups, and pool and nurture more technology talent in Hong Kong.”

It added a wide range of measures rolled out by the current-term administration to improve the city’s business environment demonstrate the Government’s determination to further strengthen Hong Kong’s competitiveness.

Out of the 63 economies assessed, the US ranked first, Hong Kong second, followed by Singapore, the Netherlands and Switzerland.

The report assessed each economy on four competitiveness factors: economic performance, government efficiency, business efficiency and infrastructure.

Hong Kong continued to maintain the top rank in government and business efficiency.

Its ranking in economic performance climbed up from 11th to ninth place, while that in infrastructure fell from 20th to 23rd.