The International Institute for Management Development (IMD) released its 2026 World Competitiveness Ranking on 18 June, covering 70 economies. Hong Kong moved up one place to second globally, its highest position since 2019, while Brazil dropped seven spots to 65th and Colombia fell five to 59th. Kuwait advanced to 31st from 36th. The reshuffle underscores a widening gap between economies that offer predictable institutions and low-cost capital and those struggling with fiscal and educational deficits.

Hong Kong placed second in government efficiency and third in business efficiency, topping the sub-factor rankings for tax policy and business legislation. The city’s education sub-factor also ranked third, a result echoed by the separate QS World University Rankings 2027, where two Hong Kong universities entered the global top 20 for the first time. The Hong Kong government attributed the competitiveness gains to stable resource investment, clear policy guidance, and rigorous quality assurance through university accountability agreements.

In Latin America, the picture is markedly different. Brazil’s decline to 65th—its worst performance in years—was driven by deterioration across all four pillars. Analysts in São Paulo point to the cost of capital as a strategic bottleneck: high interest rates raise corporate debt burdens and limit fixed-capital formation, while only 0.3% of the federal budget goes to science and technology, compared with 46% to debt service. Colombia’s five-place slide to 59th reflected lower scores in government and business efficiency, with the IMD citing the need to improve public-finance management and reduce the fiscal deficit. Kuwait’s rise, by contrast, was powered by stronger economic performance and business efficiency, according to the country’s anti-corruption authority.

Hong Kong is now formulating its first five-year plan to align with China’s national strategy, aiming to reinforce its role as a “super connector” and “super value-adder”. For Brazil and Colombia, the rankings serve as a diagnostic rather than a verdict; the next milestone will be whether their governments translate the findings into concrete reforms on education, interest-rate policy, and fiscal management ahead of the 2027 assessment.