We inhabit an era defined by profound global uncertainty, where geopolitical tensions, trade disputes, and social polarisation fundamentally reshape national competitiveness. The 2025 IMD World Competitiveness Ranking (WCR) report, now in its 37th edition, provides an in-depth analysis of the competitiveness landscape across 69 economies.
Published by the IMD World Competitiveness Center, this report offers valuable insights into how nations and businesses compete globally. Traditional pillars like macroeconomic stability and business efficiency remain necessary but insufficient. Competitiveness now demands digital readiness, green transition management, and sophisticated resilience strategies amidst enduring economic fragmentation.
Regional vulnerabilities emerge distinctly: Latin America grapples with acute political fragmentation, while social inequalities concern nations globally, and emerging economies signal deficient economic opportunities.
Competitiveness, therefore, extends beyond GDP — encompassing institutional quality, human development, and productive agility fostered through open trade and robust infrastructure. This compels leaders to relearn strategy with policy wisdom and collaborative agility.
Top 10 Most Competitive Countries 2025
| Rank | Country |
| 1 | Switzerland |
| 2 | Singapore |
| 3 | Hong Kong SAR |
| 4 | Denmark |
| 5 | United Arab Emirates (UAE) |
| 6 | Taiwan (Chinese Taipei) |
| 7 | Ireland |
| 8 | Sweden |
| 9 | Qatar |
| 10 | Netherlands |
Key Trends in Country Competitiveness
The 2025 Competitiveness rankings reveal significant realignments among top economies. Switzerland reclaims first position through unparalleled institutional strength and infrastructure, though high costs challenge its business efficiency.
Singapore and Hong Kong SAR (second and third) demonstrate resilience but face emerging pressures in workforce adaptability and education investment. Notable advancements by the UAE (fifth) and Qatar’s historic top ten entry (ninth) underscore strategic gains in business dynamism and labour markets, albeit with infrastructure and innovation gaps.
Regionally, Eastern Asia and Western Europe lead through institutional resilience and advanced infrastructure, anchoring global competitiveness. Western Asia & Africa exhibit strong momentum, propelled by Gulf economies like the UAE and Qatar prioritising business dynamism and labour reforms. North America shows mixed outcomes amid regional divergence. South America registers progress yet contends with persistent challenges.
Economies like Denmark and Sweden exemplify the “Champion” archetype, combining efficient governance with social cohesion to withstand external shocks. Conversely, nations with institutional weaknesses and high inequality face compounded vulnerabilities, as seen in Colombia and South Africa. This reaffirms that institutional strength is not merely administrative but foundational to sustained competitiveness.
Crucially, government efficiency emerges as the decisive differentiator, mitigating socio-economic polarisation across all regions. Cross-national data reveals a strong inverse correlation between institutional quality (Rule of Law Index) and inequality (Gini coefficient).
How the IMD World Competitiveness Ranking Works
The IMD World Competitiveness Ranking evaluates how nations foster enterprise competitiveness through their national environment. It assesses 64 economies using 341 criteria across four equally weighted pillars: Economic Performance, Government Efficiency, Business Efficiency, and Infrastructure. Each pillar comprises five sub-factors (totalling 20), each contributing 5% to the overall ranking.
Hard data accounts for two-thirds of the ranking (e.g., GDP, employment), sourced from international organisations and national statistics. Soft data, comprising one-third of the ranking, derives from executive surveys (e.g., managerial competence perceptions).
Criteria are standardised, aggregated by sub-factor, then consolidated into national rankings. Background criteria (e.g., population demographics) inform context but are excluded from scoring.
Key Takeaways
The 2025 IMD World Competitiveness Ranking report underscores that competitiveness must be “re-earned” in an era of geopolitical fragmentation and socio-economic polarisation. Nations and businesses must embrace strategic agility, investing in digital transformation, green transitions, and human capital development.
The report also highlights the critical role of government efficiency in mitigating societal polarisation and fostering long-term competitiveness.
For policymakers and business leaders, the key takeaway is clear: resilience and adaptability are no longer optional but essential capabilities for thriving in an uncertain world.
More about the 2025 World Competitiveness Ranking here.
Want more? Explore our Country Observatory for snapshots of how countries compare on economic performance, brand strength, soft power, and reputation.
