Switzerland knocked off world competitiveness perch

Switzerland drops two places in the competitiveness rankings Keystone-SDA

Switzerland has lost its top spot in the global competitiveness rankings and moves to third place, according to the Lausanne-based business school IMD.

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Switzerland now ranks behind Hong Kong and Singapore, which is once again in first place, as it was in 2024.

This decline is due to a sharp fall in the economic performance indicator, which dropped 24 places to finish 37th, according to a statement released by the IMD.

Next come Taiwan, which has climbed two places, and the United Arab Emirates, which has retained the fifth place it secured in 2025 following its meteoric rise of seven places the previous year.

The slump in Switzerland’s economic performance is due to a sharp deterioration in direct investment flows, which is itself linked to geopolitical shocks.

Within this indicator, the cost-of-living index of 109.75 (65th in the world) and petrol prices of $2.07 per litre (64th) show that Swiss businesses are facing high costs.

Furthermore, employment growth has slowed to 0.21% (49th) and, over the long term (60th). Switzerland has even seen a decline of 0.30% in this area. In the three other areas – government efficiency, business efficiency and infrastructure – Switzerland retains its lead.

Absorbing shock

According to the study, which scrutinises 70 economies each year, a country’s competitiveness depends on the strength of its institutions, as well as its ability to cope with volatility and absorb shocks, against a backdrop of intensifying geopolitical tensions.

“The more the world fragments, the greater the value of legal certainty, binding commitments, and the efficiency and legitimacy of the state,” the report states. In countries with credible institutions, business can carry on as normal.

Singapore’s return to the top of the table reflects this agility and is attributable to a recovery, particularly in the area of business efficiency, even though economic performance has declined.

Hong Kong owes its second-place ranking to a rebound across all four indicators assessed: ‘government efficiency’, ‘infrastructure’, ‘economic performance’ and ‘business efficiency’.

Translated from French by AI/mga

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