Singapore retakes No. 1 in IMD ranking as Switzerland drops to third
What's new: IMD linked Switzerland's slide to negative $60.7 billion in inward investment and pressure from a strong franc and US tariffs.
Singapore climbed back to the top of the 2026 IMD World Competitiveness Ranking, while Switzerland fell from first to third and Hong Kong moved into second. IMD said Singapore's rebound was driven by business efficiency, a spot it last held in 2024. Switzerland remained the highest-ranked European economy, but the report pointed to a sharp deterioration in foreign investment appeal as a strong Swiss franc and higher US trade tariffs weighed on capital flows. Switzerland's inward direct investment turned negative $60.7 billion, placing it last among the 70 economies measured on that metric. IMD said the swing may partly reflect valuation changes and capital repatriation, not only a structural decline.