10 Most Competitive Economies in the World in 2026 - Tempo.co English

TEMPO.CO, Jakarta - Singapore has topped the 2026 IMD World Competitiveness Ranking, while Indonesia placed 48th among 70 economies assessed for their ability to create conditions for businesses to compete and generate long-term value.

The annual ranking by the Switzerland-based International Institute for Management Development (IMD) evaluates economies based on four broad factors: economic performance, government efficiency, business efficiency and infrastructure.

Singapore ranked first with a normalized score of 100, reclaiming the top spot from Switzerland.

It was the only economy to rank among the global top five across all four competitiveness factors. Its business efficiency also improved to first place in 2026.

Hong Kong ranked second with a score of 95.6.

The territory remains one of the world's most competitive business hubs, supported by its strong business environment and economic performance.

Switzerland placed third with a score of 95.3, slipping from the top position it held previously.

Despite losing the overall lead, it remained among the three highest-ranked economies globally.

Taiwan, listed by IMD as Chinese Taipei, ranked fourth with a score of 94.3.

Its position places it ahead of several major European economies and the United States.

The United Arab Emirates (UAE) ranked fifth with a score of 94.1.

Its position reflects the competitiveness of an economy that differs significantly from the predominantly European and Asian economies occupying the top ranks.

Denmark also scored 94.1, placing sixth overall.

The country was among the three economies tied on the same score immediately behind Taiwan.

Ireland ranked seventh, also recording a score of 94.1.

The country remains one of Europe's strongest performers in the competitiveness ranking.

The Netherlands placed eighth with a score of 90.1.

Its ranking puts it among the eight economies scoring above 90 points in the 2026 assessment.

Sweden ranked ninth with a score of 88.5, keeping the Nordic economy within the global top 10.

The United States rounded out the top 10 with a score of 86.8.

Its 10th-place ranking highlights the distinction between economic size and competitiveness. Although the US is the world's largest economy, IMD's assessment looks beyond GDP to factors affecting the business environment.

Europe and Asia account for nine of the top 10 positions, reflecting the strength of economies that combine productive businesses, sophisticated infrastructure, skilled workforces, and institutions that support predictable investment and commerce.

The 2026 IMD report places particular emphasis on institutional credibility and the rule of law. Predictable regulations, enforceable contracts, and effective government can help businesses make longer-term investments, particularly amid geopolitical uncertainty.

Innovation is another key factor. Several of the economies near the top of the ranking are home to or closely connected with major global innovation clusters, strengthening their ability to commercialize technology, attract talent, and improve productivity.

At the same time, the rankings show that there is no single formula for competitiveness. The UAE's seventh-place ranking and the U.S.'s 10th-place position demonstrate how very different economic models can produce highly competitive business environments.

IMD does not measure competitiveness by economic size alone. Its 2026 ranking combines hard economic data with business leaders' views to assess how well 70 economies create an environment for businesses to compete and grow.

Two-thirds of the score comes from 172 statistical criteria, covering data collected from international and national institutions, private organizations, and IMD's partner institutes.

The remaining one-third comes from 92 survey criteria based on responses from about 6,900 business executives surveyed between February and April 2026.

The criteria are grouped into four key areas: economic performance, government efficiency, business efficiency, and infrastructure. Each area is divided into five sub-factors, with every sub-factor carrying an equal 5 percent weight.

IMD then standardizes the results to compare economies across different types of data and measures their relative performance against one another.

The result is a ranking that looks beyond GDP or economic size to capture the broader conditions that make an economy competitive.