Switzerland is the most competitive country in the world in 2025
Switzerland climbs to first place in the IMD's World Competitiveness Ranking 2025. An impressive signal of stability, efficiency and future viability in an increasingly fragmented global market. While protectionist tendencies are on the rise and geopolitical tensions are making international conditions more difficult, the Swiss economy is holding its own thanks to its strategic strength, institutional quality and innovative power.
Switzerland is once again at the top of the most competitive countries in the world. For the first time in years, it is back in first place in the renowned IMD World Competitiveness Ranking. In the previous year, it was still in second place, but has now overtaken Singapore and confirmed its position as an international benchmark for economic performance under complex framework conditions.
According to the report, the main reasons for this success are the high efficiency of state institutions, first-class infrastructure and social stability. In both categories, government efficiency and infrastructure, Switzerland once again secured the top spot. These qualities are becoming increasingly important as the global economy is confronted with disruptive changes, trade reorganisation and geopolitical shifts.
Challenges despite top ranking
Despite the excellent overall ranking, the report also reveals weaknesses. Economic performance falls to 13th place and corporate efficiency to 6th place, signalling that global competition is also leaving its mark on Switzerland. The reasons: rising cost pressure, regulatory complexity and increasingly difficult market access abroad.
Against the backdrop of protectionist tendencies in particular, it is clear that Switzerland must diversify its trade relations in a targeted manner. Securing access to international markets and avoiding one-sided dependencies are becoming a greater focus of location policy.
Strategy for sustainable competitiveness
The authors of the ranking emphasise that efficiency, agility and future orientation are central pillars of long-term competitiveness. Switzerland scores highly here thanks to its reliable legal system, solid public finances, stable educational institutions and strong innovation ecosystems.
However, it also faces major challenges. Reforming the pension system, ensuring the sustainability of public finances and promoting sustainable innovation will determine the future viability of the location. The report calls for structural strength not to be taken for granted, but to be further developed through forward-looking policies and targeted investments.
International perspective
Switzerland is followed by Singapore in second place, which is particularly impressive in terms of government efficiency, but loses ground in the area of corporate efficiency. Hong Kong moves up two places and is now in third place, a sign of the successful repositioning of the Special Administrative Region.
Germany’s rise to 19th place after several difficult years is also noteworthy. Canada climbed eight places and shows that targeted reforms can have an impact. These international shifts illustrate the dynamics of global location competition.
Switzerland remains a leader, but not immobile
The World Competitiveness Ranking 2025 emphasises that Switzerland is a global pioneer in terms of location quality, but it must not rest on its laurels. Political foresight, strategic openness and investment in forward-looking structures are now required. The coming years will show whether Switzerland can not only maintain its leading position, but also expand it further in a volatile environment.