Singapore is world’s most competitive economy in 2024: IMD

The city-state also held the top spot in 2020.

Singapore was named the world's most competitive market this year after climbing three places from the fourth spot in 2023, according to the latest IMD World Competitiveness Ranking.

The Lion City dethroned Denmark from the No. 1 spot, taking back the title that it last held in 2020 as the city-state made big improvements in governance, business environment and infrastructure. Its economic performance remained unchanged from last year.

Specifically, Singapore ranked second in both international trade and international investment, while it continued to score highly in the domestic economy category. Its performance in employment and prices, meanwhile, slipped.

IMD said uncertainties in its external environment and resource constraints are among the top concerns of the country this year. 

On the flip side, it said the tech-savvy nation can take advantage of the opportunities emerging in new technologies like AI.

Switzerland ranked as the second most competitive market globally followed by Denmark in the third place, according to IMD.

Singapore’s financial hub rival, Hong Kong, climbed two spots and placed fifth in this year’s rankings, while Taiwan (8th) was the only other Asian country to make it to the top 10. Economic powerhouses USA and China ranked 12th and 14th, respectively.

This year marked a comeback for Singapore after it fell to the fourth spot in 2023, when IMD had pointed to prices, management practices, and health and environment as areas for improvement.

Now in its 36th year, the IMD World Competitiveness Ranking assesses the progress of 67 economies worldwide by measuring the quality of institutions, human development, quality of life, and quality of government.