Singapore returned to the top position in the 2026 IMD World Competitiveness Ranking after placing third in 2025 and first in 2024. The ranking assessed 70 economies on economic performance, government efficiency, business efficiency, and infrastructure [1, 2, 3, 4].
The city-state showed its largest gain in business efficiency, leaping eight places to first globally. It ranked third in government efficiency, fifth in infrastructure (up one place), and third in economic performance (down two places) [1, 2, 3, 4].
Hong Kong rose from third to second place, driven by strong government efficiency, while Switzerland slid from first to third due to declines in economic performance and investment flows [1, 2, 3, 4]. Taiwan climbed two places to fourth, reflecting steady or improved results across all four factors. The United Arab Emirates held fifth place for the second year running [1, 3, 4].
The United States improved from 13th to 10th, buoyed by increased business executive confidence, though questions remain over the durability of these gains. China moved up from 16th to 12th on strong performance in business and government efficiency [1, 2, 4].
Many European countries fell in rank, reflecting ongoing impacts from geopolitical issues including the war in Ukraine [1, 3, 4]. Arturo Bris, Director of the IMD World Competitiveness Centre, said at a June 17 press conference that "Competitiveness in 2026 is no longer primarily a contest of cost, scale, or even of innovation, but one of institutional credibility" [1, 2].
He added that "Nations with their own tried-and-tested, credible institutions gain the advantage in this context because – as the international system ceases to serve so many national needs – business can carry on as usual." The worsening geopolitical environment and growing global fragmentation increase the value of predictable rules, enforceable commitments, and legitimate state capacity [1, 2, 3, 4].
The IMD released the 2026 World Competitiveness Ranking on June 18, confirming Singapore’s return to the number one spot among the 70 economies evaluated [1, 2, 3, 4].
