Singapore Claims Economic Competitiveness Crown

Does MAS Engage in Currency Manipulation?

The city-state has reclaimed the title it lost in 2010, leading a strong performance by the Asia-Pacific region as a whole.

Singapore has switched positions with the third-placed United States to become the world's most competitive economy, leapfrogging Hong Kong in the process, said Switzerland-based business school International Institute for Management Development (IMD), which has published the World Competitiveness Rankings annually since 1989.

The rankings use 235 indicators from each of the 63 ranked economies, which include both hard data and opinion surveys, which are used to rank the countries in four categories: economic performance, infrastructure, government efficiency, and business efficiency.

Efficient Ways to Set Up New Businesses

IMD said Singapore's rise to the top was driven by the country's advanced technological infrastructure, availability of skilled labor, favorable immigration laws, and efficient ways to set up new businesses. Hong Kong maintained its second position due to its benign tax and business policy environment and access to business finance. The U.S. was affected by higher fuel prices, weaker high-tech exports, and fluctuations in the value of the dollar.

«In a year of high uncertainty in global markets due to rapid changes in the international political landscape as well as trade relations, the quality of institutions seem to be the unifying element for increasing prosperity. A strong institutional framework provides the stability for business to invest and innovate, ensuring a higher quality of life for citizens,» said Arturo Bris, IMD professor and director of the IMD World Competitiveness Center.

Asia-Pacific Improves

The Asia-Pacific region was the most improved from 2018, with 11 of 14 of its economies improving or maintaining its position on the list. Indonesia had the strongest showing, moving up 11 places to 43rd on the back of increased government efficiency, as well as improvement in infrastructure and business conditions.

Switzerland was one of the few bright spots in Europe, climbing one place to fifth, helped by economic growth, the stability of the Swiss franc and high-quality infrastructure. It also ranked top for university and management education, health services and quality of life. Ireland was the other standout performer in a continent struggling with a sluggish economy, climbing five places to place seventh.

Most Competitive Economies