Singapore has been ranked the most economically competitive nation globally by the IMD business school, displacing Switzerland, which fell to third place. The shift highlights global economic volatility and factors like U.S. tariffs.
The shift in global competitiveness rankings reflects changing economic dynamics, with Singapore's rise and Switzerland's decline influenced by factors such as trade policies, foreign investment, and geopolitical stability.
Singapore has ascended to the top position in the IMD World Competitiveness Ranking, displacing Switzerland, which now ranks third. The annual assessment by the IMD business school evaluates economic performance, business and government efficiency, and infrastructure across 70 nations.
Hong Kong secured the second spot, while Taiwan and the United Arab Emirates followed in fourth and fifth places, respectively. The United States was ranked tenth, with Venezuela at the bottom of the list.
According to IMD professor Arturo Bris, Switzerland's slip in the rankings was primarily due to a weaker economic performance, influenced by high U.S. tariffs imposed by the Trump administration and a decrease in foreign direct investment last year. The study also highlighted that Switzerland's consensus-based governmental approach can lead to slower responses during crises, and the country was negatively impacted by rising protectionism and the weakening of globalization.
Bris noted that smaller countries not aligned with larger trade blocs are particularly vulnerable in the current global climate where the rule of law has reportedly deteriorated. A separate study indicated that Switzerland had already been surpassed by Hong Kong as a preferred destination for wealthy foreign investors.
However, Ivo Germann, representing the Swiss economy ministry, asserted that Switzerland maintains a high level of competitiveness, particularly excelling in government efficiency and infrastructure. He added that Switzerland is actively countering protectionism by pursuing more free trade agreements, referencing recent pacts with India and the South American trade bloc Mercosur.