Chief Executive John Lee on Tuesday said Hong Kong's third position in a global competitiveness ranking shows the government's policies have borne fruit.

The SAR has climbed two places in the International Institute for Management Development's World Competitiveness Yearbook since last year, with Hong Kong returning to the top three for the first time since 2019.

The ranking takes into account criteria including economic performance, government efficiency, business efficiency and infrastructure.

"The World Competitiveness Yearbook affirms that Hong Kong has a world-class business environment and reflects the positive views of business leaders regarding Hong Kong's competitiveness," Lee said ahead of this week's Executive Council meeting.

"That shows that we have advantages including the rule of law, independent judiciary, a simple and low taxation system and a highly transparent and efficient market. We have a robust financial system, a business environment that facilitates operations at the highest international standards and a free flow of information, goods, people, capital and so on. These are all recognised by the business sector."

The SAR was ranked second for government efficiency, with Lee saying this shows his administration is improving people's livelihoods.

Switzerland claimed the top spot in the ranking, with Singapore in second place.