Singapore has once again been crowned the world’s most competitive economy, reclaiming the top spot after being ranked second last year, according to the 2026 IMD World Competitiveness Ranking. The annual ranking, compiled by the Institute for Management Development (IMD), assesses 70 economies based on economic data and the views of business executives. It measures competitiveness across four main factors: economic performance, government efficiency, business efficiency, and infrastructure.
Singapore’s rise to first place was driven largely by a significant improvement in business efficiency. The country jumped from eighth place to first in this category, reflecting stronger performance in areas such as productivity, management practices, finance, labour markets, and business values. The city-state also ranked third globally in both economic performance and government efficiency, while securing fifth place in infrastructure. It recorded particularly strong results in international trade, productivity, scientific infrastructure, and price stability, where it ranked second worldwide.
Singapore was ranked fourth in several other indicators, including public finance, tax policy, international investment, health and environment, and business legislation. It was also ranked fifth in basic infrastructure, sixth in education, and seventh in institutional strength, social framework, and management practices. Despite its impressive overall performance, challenges remain. Singapore ranked 14th in labour market performance, 16th in technological infrastructure, and 23rd in finance. Its lowest ranking was in attitudes and values, where it placed 69th among the 70 economies surveyed.
The report also highlighted the country’s strong economic fundamentals. Singapore’s economy grew by 5.0 per cent in 2025, while inflation remained low at 0.9 per cent. Unemployment stood at just 2.0 per cent, and the country recorded the world’s highest GDP per capita based on purchasing power parity, reaching US$163,406. Singapore’s Ministry of Trade and Industry noted that the country still faces long-term challenges, including geopolitical uncertainties, rapid advances in artificial intelligence, the transition to a low-carbon economy, and demographic pressures caused by an ageing population and slower workforce growth.
Hong Kong ranked second in the 2026 list, followed by Switzerland, Taiwan, and the United Arab Emirates. Switzerland, which topped the ranking in 2025, slipped to third place as Singapore reclaimed the number one position.
