Taiwan skyrockets to a record fourth place in 2026 IME World Competitiveness Ranking

　The Switzerland-based International Institute for Management Development published the 2026 IMD World Competitiveness Yearbook on June 18, 2026, which placed Taiwan fourth among the 70 economies assessed.  Taiwan rose two places higher than in 2025, achieving its best-ever performance since 1997 when it was first included in the annual survey.  In addition, Taiwan has remained on the top of the ranking for six straight years among the economies with a population of more than 20 million, which demonstrates Taiwan’s remarkable economic resilience and international competitiveness in the heightened uncertainty of the global economic and trade environment.  

　This ranking grades worldwide economies based on four pillar factors including “economic performance”, “government efficiency”, “business efficiency” and “infrastructure”, serving as the important international benchmark of an economy’s overall economic strength, governance capability, business environment, and long-term development conditions.  Among the four factors, Taiwan moved up five positions in “economic performance” compared with the ranking of 2025, which is the main reason for the rise of its overall ranking.  In addition, Taiwan climbed two spots to sixth in “government efficiency” and stayed at the fourth spot in “business efficiency” and also the 10th position in “infrastructure”.  Taiwan was placed among the top three globally in 30 indicators, which reflects Taiwan’s continued strengths in technology and R&D, industrial competitiveness, corporate governance, and talent quality.  

1.  Economic Performance:  Improved from 10th to 5th places

　There was a notable leap in Taiwan’s rankings of several sub-factors, with “domestic economy” climbing from 4th to 2nd spot, “international trade” surging from 30th to 13th, and “employment” advancing from 37th to 18th.  In individual indicators, Taiwan ranked 2nd globally in both “growth in exports of goods” and “real GDP growth per capita”, while ranking 6th in “real growth in gross fixed capital formation”.  Also, Taiwan placed 4th worldwide in “economic resilience” and 2nd in “current account balance as a percentage of GDP”.

2. Government Efficiency:  Rising from 8th to 6th places 

　Taiwan ranked 7th, 8th, and 9th in “public finance”, “tax policy”, and “institutional framework”, respectively, remaining among the top 10 globally.  
Its rankings in “business legislation” and “societal framework” also continued to improve.  Among individual indicators, Taiwan topped the global ranking of “government is elected by free elections”, while ranking among the top three in “capital markets (foreign and domestic) are easily accessible” and “cost of capital does not hinder business activity”.  Moreover, Taiwan also placed among the top ten in “total general government debt (% of GDP),” “Tax evasion is not a threat to the economy,” and “tariffs on imports”. 

3.  Business Efficiency:  Finishing 4th, unchanged from last year 

　Taiwan’s rankings in “management practices” and “productivity and efficiency” were 2nd and 4th, respectively, and its rankings in “finance” and “attitudes and values” remained among the top 10 globally.  Among individual indicators, Taiwan’s rankings in “Managers have an entrepreneurial spirit,” “The public trusts business managers,” “Businesses respond quickly to opportunities or threats,” and “Society has a positive attitude toward globalization” were all 1st  globally, while those in “Businesses are agile and flexible” and “Public trust in AI” were also among the top three globally.

4.  Infrastructure:  Coming in 10th, unchanged from last year

　Taiwan’s rankings in the sub-factors, “scientific infrastructure”, “education”, and “technological infrastructure” were 4th, 8th, and 10th, respectively, while its ranking in “health and environment” leaped to 18th from 25th.  At the individual indicator level, Taiwan was placed among the top three globally in “total R&D expenditure as a percentage of GDP”, “business expenditure on R&D as a percentage of GDP”, “R&D personnel per thousand people”, “high-tech exports as a percentage of manufactured exports”, and “medium- and high-tech value added as a percentage of manufacturing value added”.  In terms of education and quality of life, Taiwan also ranked among the top five globally in “proportion of the population aged 25–34 with tertiary education”, “health infrastructure meeting the needs of society”, and the “proportion of students who are not low achievers in PISA science, mathematics, and reading”.  (Released 2026.06.18)  
/CCS