Last month, the valued non-profit organisation, the World Economic Forum (WEF) released its Global Competitiveness Report for 2018, ranking Hong Kong as the 7th most competitive economy globally, with the Asian hub losing its position of 6th place in 2017 out of 140 other countries worldwide.
The top 6 position were ranked on nearly 100 independent factors over various categories in order to evaluate each jurisdictions competitiveness, with the following taking the top spots:
The forum released an announcement stating that the influencing factors had been slightly revised in order to reflect the rapidly digitised world economy in 2018. The index had also been tweaked to account for the repercussions of the 2008 financial crisis; changes in human capital; and the so-called fourth global industrial revolution.
Other notable countries included China coming in notably lacking in 28th position and the UK with Brexit fast approaching in 8th place which remains unchanged from last year.
Hong Kong scored highest for the best business environment and most resourceful human capital; however, lost out to other factors such as lacking in its innovation ecosystem; ranking in 20th place overall for business vitality & dynamics and 36th overall for innovative capability.
The notable points of the redrafted edition of the forum has shown that no single one factor can make a country stand out in terms of true competition; and each jurisdiction can find the beauty in using its own individual character to create a competitive business environment; rather than the cost of each respective tax rate.
the forum’s managing director stated: ‘if anything, the report this year goes to show that there are simply no silver bullets.’ Essentially meaning that in a world where countries have greater access to cheaper capital and technology than ever before, they can no longer rely on competing using low-skilled labour.
Emerging economies such as China need to industrialise firstly; then bring in other aspects of growth and competitiveness in order to secure a better place next year to match its growing GDP.