Hong Kong was ranked the seventh most competitive economy by the International Institute for Management Development in its World Competitiveness Yearbook 2023, compared to fifth last year.

Among the four competitiveness factors, Hong Kong continued to rank second globally in government efficiency while its ranking in infrastructure also improved. 

Yet, due to the upsurge in the COVID-19 epidemic last year, Hong Kong’s ranking in business efficiency fell slightly and its ranking in economic performance also dropped as the city’s economy weakened notably and recorded negative growth in 2022.

On sub-factors, the city continued to top the ranking in business legislation and was in the top five positions in tax policy, international investment, international trade and technological infrastructure.

Apart from pointing out that the yearbook recognised Hong Kong as one of the most competitive economies in the world, the Government emphasised that the city's competitiveness is underpinned by its distinctive institutional strengths under “one country, two systems”.

Such notable strengths include the continuation of the common law system, the exercise of independent judicial power by the Judiciary, a favourable business environment with efficient and transparent markets, a regulatory regime in line with international rules, an efficient and clean government, a simple and low tax system, world-class professional services, and free flow of goods and production factors including talent, capital and information, etc. 

The Government noted that the slight fall in Hong Kong’s ranking was mainly due to the epidemic upsurge and weak economy last year and made it clear that as the city resumes normalcy and restores full connectivity to the Mainland and the rest of the world, its economy will improve notably this year.

While stressing that Hong Kong should stay vigilant of the increasingly intense competition among economies and respond proactively, striving to further enhance its competitiveness, it also pointed out that since taking office, the new-term Government has been promoting a better integration of capable government and highly efficient market.

Aside from upholding Hong Kong's institutional strengths and competitive advantages, the Government has implemented strategies to compete for talent and enterprises with a view to attracting strategic enterprises as well as talent and capital from around the world.

Additionally, it has stepped up investment in infrastructure as well as innovation and technology, and continued to increase land and housing supply, in order to expand capacity for the sustained growth of Hong Kong's economy and pursuit of high-quality development.

The Government said the city will continue to benefit from the sustained eastward shift of global economic gravity in the future. 

It explained that under “one country, two systems”, Hong Kong will leverage the staunch support of its motherland while staying connected to the world, and continue to serve the distinctive roles as a gateway, a springboard and an intermediary by virtue of its distinctive institutional and geographical advantages. 

Hong Kong will also actively align with national development strategies, seize the opportunities arising from the National 14th Five-Year Plan, the Greater Bay Area development and the Belt & Road Initiative, so as to pursue economic development and enhance people's quality of life, the Government added.