Singapore overtakes Switzerland in global competitiveness ranking, IMD says

Singapore pushed past Switzerland to claim the top spot in IMD Business School’s 2026 World Competitiveness Ranking, ending Switzerland’s brief return to first place and underscoring how quickly the global pecking order can change when capital is looking for stability, flexibility and speed. The ranking covered 70 economies and assessed them across 341 competitiveness criteria, making the shift more than a symbolic reshuffle.

IMD said the 2026 results marked a change in what competitiveness means. The old emphasis on cost, scale and output gave way to institutional credibility, adaptability and resilience, a distinction that matters in a year defined by geopolitical tension, fragmented trade and increasingly cautious cross-border investment. Arturo Bris, director of IMD’s World Competitiveness Center, said worsening geopolitical conditions and rising global fragmentation were rewarding countries whose institutions allow businesses to keep operating normally even when international systems no longer meet every national need.

Singapore’s return to first place was driven by a broad recovery across several areas, led by business efficiency. Hong Kong rose to second place, reflecting sustained strength across government efficiency, infrastructure, economic performance and business efficiency. Taiwan, also known as Chinese Taipei, climbed to fourth, extending an upward trend that shows how Asia’s financial and logistics hubs have gained ground as supply chains diversify and firms reassess where to base operations.

Switzerland’s fall to third did not erase its standing as one of the world’s strongest economies, and it remained the highest-ranked European economy. But IMD said the country’s economic performance weakened sharply because of a severe deterioration in direct investment flows. Its high cost structure continued to weigh on its appeal, with a cost-of-living index of 109.75, ranked 65th, and gasoline prices of $2.07 per liter, ranked 64th.

The comparison with 2025 shows how narrow the margin at the top has become. Switzerland had ranked first overall that year, with government efficiency first and infrastructure first, although its economic performance was only 13th. IMD said the country faced the challenge of sustaining growth amid protectionist pressures and a weakening multilateral trading system. The 2026 reversal suggests that even a country long associated with precision, stability and strong public institutions can lose ground when direct investment softens and volatility pushes companies toward economies that look more adaptable.