Singapore reclaims IMD world competitiveness crown

Its stronger corporate performance helped lifted SG above 69 economies.

Singapore ranked first amongst 70 economies in the 2026 IMD World Competitiveness Ranking, reclaiming the top spot from second place a year earlier as a sharp improvement in business efficiency lifted the republic back to the top of the global standings.

Singapore ranked first globally for business efficiency, third for economic performance and government efficiency, and fifth for infrastructure, according to the Institute for Management Development (IMD). 

The ranking evaluates economies using a combination of economic indicators and executive survey responses across areas such as economic performance, government efficiency, business efficiency, and infrastructure.

Singapore's business efficiency ranking improved by seven places from a year earlier, helping lift the republic back to the top of the overall standings.

The country also recorded strong results across several sub-factors, ranking second in international trade, productivity and efficiency, scientific infrastructure, and prices.

It placed third in business legislation, fourth in public finance, tax policy, international investment, and health and environment, and fifth in basic infrastructure.

It ranked sixth in education, and placed seventh in institutional framework, societal framework, and management practices each.

Some areas ranked lower. Singapore was placed 14th for labour market, 16th for technological infrastructure, and 23rd for finance. Attitudes and values was its lowest-ranked category at 69th.

The yearbook also highlighted Singapore's economic indicators. Real GDP expanded 5.0% in 2025, inflation stood at 0.9%, and unemployment remained at 2.0%.

Singapore ranked first globally for GDP per capita based on purchasing power parity at US$163,406.

The Ministry of Trade and Industry identified several challenges facing Singapore, including geopolitical tensions, rapid advances in artificial intelligence, the transition towards a lower-carbon economy, and demographic pressures stemming from an ageing population and slower workforce growth.

Hong Kong ranked second overall in the 2026 competitiveness ranking, followed by Switzerland, Taiwan, and the United Arab Emirates.