Hong Kong remains the second most competitive economy in the world and the most competitive in Asia, according to the World Competitiveness Yearbook 2006 released by the International Institute for Management Development (IMD).

Hong Kong’s competitiveness continued to rank second among all the 61 economies (including nine regional economies within countries). The territory’s ranking among small economies remained the first.

The economies were ranked according to an analysis of 312 criteria, under four main input factors: economic performance, government efficiency, business efficiency and infrastructure.

Hong Kong continued to rank first in business efficiency and government efficiency. The ranking for infrastructure also rose notably.

On individual criteria, Hong Kong ranks first in 45 criteria, and scores very high rankings in a number of other areas, including legal and regulatory framework, labor regulations, personal and corporate taxes, entrepreneurship, adaptability of companies to market changes, international experience of senior managers generally, and internet and mobile telephone costs.