Hong Kong has successfully reclaimed its title as the most competitive economy in the world from the United States, according to IMD World Competitiveness Center.

Based on a survey from 61 jurisdictions worldwide, Hong Kong secured the top spot for 2016 as the country "encouraged innovation through low and simple taxation and imposed no restrictions on capital flows."

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According to Prof. Arturo Bris, director of IMD World Competitiveness Center, Hong Kong's effort to establish a business-friendly environment has played an important role in its capacity to defy regional challenges.

Hong Kong used to reign the top place but was surpassed by the United States for three years. However, this year, the US slipped to the third place and was overtaken by Switzerland, which secured the second spot.

"The USA still boasts the best economic performance in the world, but there are many other factors that we take into account when assessing competitiveness," Bris said.

Other than Hong Kong, Singapore, which currently holds the fourth spot, is the only Asian entrant that made its way to the top 10 list for 2016. Completing the magic ten are Sweden, Denmark, Ireland, Netherlands, Norway, and Canada.

The ranking is based on over 340 measures derived from four major factors: economic performance, government efficiency, business efficiency, and infrastructure.

IMD World Competitiveness Center is a research group from IMD business school. The center has been publishing rankings on the annual assessment of the competitiveness of countries since 1989.

TagsHong Kong, most competitive economy, IMD World Competitiveness Center, Singapore, United States, Economy