IMD World Competitiveness Booklet2026World CompetitivenessCenter
2IMD, IMD REAL LEARNING. REAL IMPACT, and IMD WORLD COMPETITIVENESS YEARBOOK are trademarks of IMD – International Institute for Management DevelopmentChoose the product that meets your needsVisit our e-shop: www.wcceshop.orgJune 2026IMD WORLD COMPETITIVENESS BOOKLET 2026ISBN-13 978-2-940485-66-6ISSN 1026-2628Copyright © 2026IMD – International Institute for Management Development23, Ch. de BelleriveP.O. Box 915CH-1001 LausanneSwitzerlande-mail: wccinfo@imd.org Internet: www.imd.org/wcc Database: https://worldcompetitiveness.imd.org/
3This booklet is just a summary. The complete Yearbook with full profiles and all the statistics is available digitally and in print. Visit our e-shop:www.wcceshop.orgTable of ContentsPreface4The IMD World Competitiveness Center7Partner Institutes8Analysis The power of reliable institutions: Buffering against geopolitical shocks17The Rule of Law: A Quiet Advantage Amid the Rumble of a Fragmented World18Geopolitical volatility and its interplay with business confidence32Top 10 Overview52Rankings in a Nutshell63What is the IMD World Competitiveness Ranking?642026 Overall Results 66Methodology68Selected Breakdowns70Factor Rankings84Competitiveness Profiles: 70 Economies89Statistical Tables161Factor I: Economic Performance162Factor II: Government Efficiency164Factor III: Business Efficiency166Factor IV: Infrastructure168
4Every year I am asked the same question: what makes an economy competitive? And every year, the honest answer drifts a little further from the textbook one. Costs matter. Scale matters. Talent, technology, infrastructure, and market access all matter. And yet, none of them explain why – in a world that is visibly fragmenting – capital, people, and trust keep gravitating toward the same handful of places. They aren’t always the cheapest, largest, or most technologically advanced of places, but they are places where people believe in the rules. All that may sound a little schoolmasterly. But a major finding of the 2026 IMD World Competitiveness Ranking (WCR) is that many of the economies at the top of the table are not the most developed economies, nor the largest exporters, nor the biggest markets. So, what are they? Economies that uphold the rule of law most consistently. Economic competitiveness in 2026 is no longer mainly a contest of cost or scale, or even of innovation. It is a contest of institutional credibility. The more fragmented the world becomes, the more valuable predictable rules, enforceable commitments, and legitimate state capacity become. We live in a less rule-bound world than at any point since the Center began publishing its WCR 38 years ago. The war between Israel and Iran has crossed thresholds that were unimaginable two years ago. The genocide in Gaza has shattered any remaining pretence that civilian protection norms are universally applied. The...