HONG KONG - Hong Kong has been ranked the world's most competitive economy for the second consecutive year, according to the International Institute for Management Development World Competitiveness Yearbook 2012 released Thursday.

Hong Kong's Financial Secretary John Tsang welcomed the institute's decision, saying "Hong Kong is highly competitive vis-a-vis most other economies in the world, especially in terms of government efficiency, business efficiency and macroeconomic performance. In particular, openness to trade, rule of law, a business-friendly environment, sound fiscal policy, mature institutional framework, well-functioning financial market, and global city image are key factors underpinning Hong Kong's success. "

The yearbook said Hong Kong maintained its top position, followed by the United States, Switzerland, Singapore and Sweden.

Among the four competitiveness factors assessed, Hong Kong continues to take the lead in government and business efficiency, and remains fourth in economic performance.