Most Competitive Economy
According to the IMD World Competitiveness Center, Hong Kong reclaim as world’s most competitive economy in 2016. The survey was conducted but the Swiss organization and survey over 5,400 business executives on four main factors: economic performance, government efficiency, business efficiency and infrastructure.
Although many concerns Hong Kong losing its edge when compared to some large mainland cities or regional rivals. The city was able to top this year’s survey because of consistent commitment to a favorable business environment, encouragement of innovation through low and simple taxation, free flow of capital, and its role as a gateway between the mainland and the global capital markets. With the global economy continue to be on the down fall it is a definite confidence booster for the Hong Kong market.
Although with such praise from big international businesses, the actual problems in Hong Kong local market is not to be sought lightly. With the housing market continue to be active and remaining at a sky high level, the Hong Kong people just cannot afford even the basics of living.
Frustration for the working class of the society remains as once again Hong Kong is label with the “longest working hours”, out of 71 global cities with an average of 50.11 hours per week.
Since the many events of cultural diversity between the local Hong Kong citizen and the mainland travelers, tourism and retail industries suffer heavily from the standstill of mainland visitors. Hong Kong retail sales plunged 13.6 percent year on year in the first two months of 2016. The biggest slump since 1999 and the worst may be yet to come as thought by many.
In a separate report on competitiveness released by the Chinese Academy of Social Sciences (CASS), Hong Kong lost out to Shenzhen for the second year in a row on being the most competitive city in China.
Although being crowned the world’s most competitive city internationally, Hong Kong government must come up with solutions to the problems dwelling internally, restore the confidence and show the Chinese government irreplaceable status on the global stage.
(Photo Credits: Phil Wiffen)