Taiwan rises to record No. 4 in IMD World Competitiveness Ranking

Geneva, June 18 (CNA) Taiwan achieved its best-ever performance in the World Competitiveness Ranking released Thursday by the Switzerland-based International Institute for Management Development (IMD), climbing two places to fourth globally.

Taiwan ranked behind only Singapore, Hong Kong and Switzerland in the 2026 report, which assesses the competitiveness of 70 economies based on economic performance, government efficiency, business efficiency and infrastructure.

Taiwan's rise from sixth place last year was driven by strong gross domestic product (GDP) and export growth, while institutional stability over the past decade also contributed to the improvement. The economy advanced across all four competitiveness pillars, the report said.

Taiwan's representative to Switzerland, Wang Szu-wei (王思為), attributed the improvement to the return of Taiwanese businesses, talent and capital, as well as expanding manufacturing, research and development, and production driven by artificial intelligence.

Wang told CNA that Taiwan's close cooperation with leading global companies had also strengthened its standing, adding that this year's ranking reflected the combined efforts of the government and the public over the past decade.

In the global arena, Singapore reclaimed the top spot due to its strong business efficiency, while Hong Kong extended its upward trend for a third consecutive year on the back of strong government efficiency and economic performance.

Switzerland, which topped last year's ranking, slipped to third, weighed down by weaker foreign direct investment, high living and operating costs, and softer employment performance, according to the report.

Arturo Bris, director of the IMD World Competitiveness Center, said during a press conference that countries with mature legal systems and credible institutions enjoy a growing advantage as geopolitical tensions worsen and global fragmentation deepens.

The report said that competitiveness in 2026 depends less on costs, size or even innovation than on institutional credibility, stating that predictable rules and the capacity to absorb economic shocks have become the defining factors for sustaining business operations.

Rounding out the top 10 were the United Arab Emirates, Denmark, Ireland, the Netherlands, Sweden and the United States.