20 Most Competitive Countries in Asia

Published on April 11, 2024 at 5:42 pm by Talha Qureshi in Business, Economy, Lists, News

In this article, we will look at the 20 most competitive countries in Asia. If you want to skip our detailed analysis, you can go directly to the 5 Most Competitive Countries in Asia.

Economic Outlook of Asia

While a stable economy fosters growth and attracts business and investment opportunities, a receding economy can do the opposite. According to the IMF, the global economic situation is stable, with growth rates projected to remain constant at 3.1% in 2024, as in 2023. Moving forward, the growth rates are anticipated to increase modestly to 3.2% in 2025, thereby fostering an overall smooth business environment.

Asia remains a key driver of global economic growth and it accounted for approximately two-thirds of global growth in 2023. The IMF raised its growth expectations for the region mainly because of the economic progress made by India and China. The global economic growth for 2023 is now expected to have reached 4.7%, against the earlier projections of 4.6%. Moreover, the regional economic forecasts for 2024 have also been revised to 4.5% instead of the October 2023 projection of 4.2%. Moving forward, the economy is expected to decelerate mildly in 2025 to 4.3% due to the lingering issue of China’s property sector crises and the expected rise in inflation rates that come with it. To read more about Asia, you can look at the 20 Fastest Growing Economies in Asia in 2024 and the 20 Most Democratic Countries in Asia.

While the overall regional average growth shows improved prospects of a soft landing, it hides significant divergence between countries. For instance, the growth for Japan is projected to slow down from 1.9% in 2023 to 0.9% in 2024 as factors contributing to growth fade away. Moreover, the growth projections for Thailand have also been cut down. On February 19, Reuters reported that Thailand’s economy witnessed an unexpected contraction in the fiscal fourth quarter of 2023, which led policymakers to downgrade the projections for 2024. Thailand’s GDP growth is now expected to be between 2.2% to 3.2%, which is against the previous projections of 2.7% to 3.7%. On the other hand, India remains a strong proponent of growth in the region, with its growth expected to remain stable at 6.5% in 2024 and 2025.

Key Companies Driving Growth in Asia

Saudi Arabian Oil Co (TADAWUL:2222), Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), and Sony Group Corporation (NYSE:SONY) are some of the key companies driving growth in Asia. To read more about Asian companies, you can look at the 20 Most Valuable Asian Companies Heading into 2024.

Saudi Arabian Oil Co (TADAWUL:2222) is one of Asia’s largest integrated energy and chemical companies based in Dhahran, Saudi Arabia. With over 90 years of experience in oil exploration and processing, the company employs more than 73,000 people. On March 1, Saudi Arabian Oil Co (TADAWUL:2222) announced its successful acquisition of Esmax Distribution SpA, commonly known as Esmax. Esmax is a leading fuel and lubricant retailer based in Chile. Its national presence spans fuel stations, distribution terminals, airport operations, and blending plants. This acquisition is considered a critical step toward Saudi Arabian Oil Co.’s (TADAWUL:2222) ambition of becoming a primary global retail player.

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is a leading manufacturer of integrated circuits. The company is based in Taiwan and has an operational presence in China, Europe, Japan, the United States, and Africa. Some services provided by Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) include wafer probing, wafer manufacturing, assembly, testing, and designing. On February 24, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) announced the opening of Japan Advanced Semiconductor Manufacturing, Inc. (JASM) in Kumamoto. JASM is a majority-owned subsidiary of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), established in 2021. This opening is considered a significant step for JASM, and the new site is expected to offer a monthly production capacity of 100,000 12-inch wafers.

Sony Group Corporation (NYSE:SONY) is a multinational conglomerate specializing in developing and selling electronic equipment and technology. Headquartered in Tokyo, Japan, the group consists of segments that include games and networking services, music, picture and entertainment services, imaging and sensing solutions, and more. On March 19, Sony Group Corporation (NYSE:SONY) announced becoming a founding partner of the Esports World Cup. Under this multi-year partnership, Sony Group Corporation (NYSE:SONY) will create a behind-the-scenes documentary filming the players and the Esports World Cup. Moreover, the company would also be responsible for producing the music anthem of the event.

Having discussed some prominent companies and emerging economies fostering regional growth, let’s now look at the 20 most competitive countries in Asia.

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Our Methodology

To curate the list of the 20 most competitive countries in Asia, we first shortlisted highly competitive Asian countries from IMD’s World Competitiveness Ranking 2023. IMD ranks 64 countries, giving each a competitiveness score from 0 to 100 based on 4 key factors: economic performance, government efficiency, business efficiency, and infrastructure. Once we had shortlisted the countries, we ranked them in ascending order of the GDP growth rates (2024) as a primary metric and GDP per capita growth rates (2024) as our secondary metric. We have sourced GDP growth rates from the IMF, whereas we calculated GDP per capita growth rates from GDP per capita (current prices) sourced from the IMF.

It is important to note that we have included countries considered part of the Asian continent, including Middle Eastern countries.

20 Most Competitive Countries in Asia

20. Singapore

GDP Growth Rate (2024): 2.1%

GDP Per Capita Growth Rate (2024): 4.37%

Competitiveness Score: 97.44

Singapore ranks as the 20th most competitive country in Asia. It has a GDP growth rate of 2.1 and a GDP per capita growth rate of 4.38. Moreover, the country ranks highly competitive at IMD, scoring 97.44 out of 100.

19. Qatar

GDP Growth Rate (2024): 2.2%

GDP Per Capita Growth Rate (2024): 3.58%

Competitiveness Score: 89.72

Qatar is a peninsular Asian country situated in the Middle Eastern region. The country’s GDP and GDP per capita are growing at 2.2% and 3.58%, respectively. It ranks 19th on our list of the 20 most competitive countries in Asia.

18. Republic of Korea

GDP Growth Rate (2024): 2.2%

GDP Per Capita Growth Rate (2024): 4.54%

Competitiveness Score: 75.71

The Republic of Korea is an East Asian country performing well on the world competitiveness ranking and scoring 75.71. Moreover, the country is experiencing GDP growth at 2.2%, with the GDP per capita growing at 4.54%. Korea ranks as the 18th most competitive country in Asia.

17. Jordan

GDP Growth Rate (2024): 2.7%

GDP Per Capita Growth Rate (2024): 5.18%

Competitiveness Score: 52.82

Ranking 17th on our list is Jordan. It is an Arab country situated in the Southwest part of Asia. The county’s GDP is growing at 2.7%, whereas it has a GDP per capita growth rate of 5.18%.

16. Hong Kong (Special Administrative Region of China)

GDP Growth Rate (2024): 2.9%

GDP Per Capita Growth Rate (2024): 5.69%

Competitiveness Score: 92.05

Hong Kong is a specially administered region of China that ranks as the 16th most competitive country in Asia. Hong Kong performs well on the competitive ranking with a score of 92.05 and has a GDP growth rate of 2.9%. Moreover, the country’s GDP per capita is growing at 5.69%.

15. Israel

GDP Growth Rate (2024): 3%

GDP Per Capita Growth Rate (2024): 1.62%

Competitiveness Score: 78.84

Making it to the top 15 most competitive countries in Asia is Israel. It has a GDP growth rate of 3%, whereas its GDP per capita is growing at 1.62%.

14. Taiwan

GDP Growth Rate (2024): 3%

GDP Per Capita Growth Rate (2024): 5.28%

Competitiveness Score: 93.11

Taiwan is an East Asian country and officially a republic of China. The country ranks 14th on our list of most competitive countries in Asia. It has a competitiveness score of 93.11 out of 100.

13. Turkey

GDP Growth Rate (2024): 3%

GDP Per Capita Growth Rate (2024): 14.83%

Competitiveness Score: 55.64

Turkey ranks as the 13th most competitive country in Asia. It has a GDP growth rate of 3%, whereas its GDP per capita is growing at 14.83%. The country has a competitiveness score of 55.64 out of 100.

12. Thailand

GDP Growth Rate (2024): 3.2%

GDP Per Capita Growth Rate (2024): 5.94%

Competitiveness Score: 74.54

Thailand, another Southeast Asian country, ranks 12th on our list of the 20 most competitive countries in Asia. The country’s GDP and GDP per capita are growing at 3.2% and 5.94% respectively. Moreover, it has a competitiveness score of 74.54 out of 100.

11. Bahrain

GDP Growth Rate (2024): 3.6%

GDP Per Capita Growth Rate (2024): 2.17%

Competitiveness Score: 72.82

Bahrain’s GDP and GDP per capita are growing at 3.6% and 2.17% respectively, ranking it 11th on our list. The country also performs well on the competitiveness ranking and scored 72.82.

10. Kuwait

GDP Growth Rate (2024): 3.6%

GDP Per Capita Growth Rate (2024): 2.54%

Competitiveness Score: 65.59

Kuwait made it to the top 10 on our list of 20 most competitive countries in Asia. It has a GDP Growth rate of 3.6% and a competitiveness score of 65.59 out of 100.

9. Saudi Arabia

GDP Growth Rate (2024): 4%

GDP Per Capita Growth Rate (2024): 1.71%

Competitiveness Score: 88.06

Saudi Arabia is an Asian country situated in the Middle Eastern region. Its GDP is growing at 4%, whereas the country has a GDP per capita growth rate of 1.71%. It ranks 9th on our list of most competitive countries in Asia.

8. United Arab Emirates

GDP Growth Rate (2024): 4%

GDP Per Capita Growth Rate (2024): 3.57%

Competitiveness Score: 90.52

The United Arab Emirates ranks 8th on our list of the 20 most competitive countries in Asia. The country’s GDP and GDP per capita are growing at 4% and 3.57% respectively. Moreover, the country has a competitiveness score of 90.52.

7. China

GDP Growth Rate (2024): 4.2%

GDP Per Capita Growth Rate (2024): 4.9%

Competitiveness Score: 82.1

China ranks as the 7th most competitive country in Asia. It has a GDP growth rate of 4.2% and a GDP per capita growth rate of 4.9%.

6. Kazakhstan

GDP Growth Rate (2024): 4.2%

GDP Per Capita Growth Rate (2024): 11.01%

Competitiveness Score: 66.11

Kazakhstan, a Central Asian country, ranks 6th on our list. Kazakhstan’s GDP is growing at 4.2%, whereas it has a GDP per capita growth rate of 11.01%.

Click to continue reading and see the 5 Most Competitive Countries in Asia.