The IMD World Competitiveness Ranking 2025 has placed Scandinavian and East Asian economies among the world’s most competitive, highlighting their strengths in governance, innovation, and resilience.
In Scandinavia, Denmark secured 4th place globally, praised for its effective governance and social cohesion. Sweden followed in 8th place, while Norway (12th), Finland (14th) and Iceland (15th) also ranked high. Together, the Nordic countries continue to demonstrate that small and mid-sized economies can rank high.
East Asia also dominated the top tier. Singapore took 2nd place, continuing its role as one of the world’s leading financial and innovation hubs. Hong Kong SAR claimed 3rd, while Taiwan was ranked 6th..
According to IMD, competitiveness today extends beyond economic strength to include digital readiness, sustainability, and resilience. IMD Director Arturo Bris stressed that collaboration between public and private sectors is essential in navigating a fragmented global landscape.
The IMD ranking is based on a mix of hard statistical data (two-thirds of the score) and executive perceptions (one-third of the score). The ranking covers over 300 criteria across four key pillars: economic performance, government efficiency, business efficiency, and infrastructure. This combination provides a broad measure of how well countries create an environment for businesses and citizens to thrive.
The results reaffirm the strength of Scandinavian and Southeast Asian economies.
