Hong Kong Drops a Spot in World’s Most Competitive Economy

Despite Hong Kong’s slight improvement in economic performance, declining standards in education, heath, and environment puts the number two in IMD World Competitiveness Centre released on Thursday.

The latest result shows that the United States, number four last year, jumped three places to claim the number one spot this year. Singapore, the country’s regional rival remained at third place.

According to this year’s ranking, Hong Kong Special Administrative Region of the People's Republic of China continued to lead the world and business and government efficiency. The country also improved slightly in economic performance, placing 9^th this year compared to 11^th spot last year.

On the other hand, Hong Kong placed 23^rd in infrastructure, falling three spots. This is caused by a drop in its education ranking, which also slipped three spots at 18^th place.

Hong Kong also failed to remain its spot in Health & Environment and Technological Infrastructure, falling at 23^rd and 19^th place respectively.

However, a government spokesman said that the rankings prove that Hong Kong is undeniably one of the most competitive economies in the world. “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 compiling of rankings were made possible by data collected from the United Nations, World Bank, and International Monetary Fund, as well as from a range of private institutes such as well-known consultancy firms.

Region’s Spending

The latest rankings exposed Hong Kong’s series of weaknesses in its infrastructure, such as total public expenditure on education, business expenditure research and development, total expenditure on research and development, and health expenditure.

According to Financial Secretary Paul Chan Mo-po’s budget speech in February, it is estimated that the Hong Kong government for 2018-2019 would spend HK $113.7 billion on education; public health services at HK $71.2 billion and; innovation and technology at HK $50 billion.

Chan acknowledged Hong Kong’s weak scores in technological and scientific infrastructure, but he stressed that the government has already spent substantial resources to improve on this area.

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