2016 Index of Economic Freedom

Country Rankings

overall score88.6
-1.0
world rank1

#1 Hong Kong

Read More About Hong KongThe implementation of prudent economic policy within a stable and transparent legal environment has been the cornerstone of Hong Kong’s continuing achievement in maintaining the world’s freest economy. Well-secured property rights ensure vibrant commercial interactions and entrepreneurial growth. With a high level of market openness and fiscal discipline, Hong Kong continues to be a leading global business and financial hub.

Rule of Law

Property Rights90.0

Freedom From Corruption74.0

Limited Government

Government Spending90.7

Fiscal Freedom92.6

Regulatory Efficiency

Business Freedom97.4

Labor Freedom89.0

Monetary Freedom81.8

Open Markets

Trade Freedom90.0

Investment Freedom90.0

Financial Freedom90.0

overall score87.8
-1.6
world rank2

#2 Singapore

Read More About SingaporeEconomic growth has slowed in Singapore, but the city’s openness to global trade and investment continues to provide a solid basis for economic dynamism. A transparent regulatory environment, buttressed by well-secured property rights, provides commercial security for the innovative and resilient private sector.

Rule of Law

Property Rights90.0

Freedom From Corruption84.0

Limited Government

Government Spending90.1

Fiscal Freedom91.2

Regulatory Efficiency

Business Freedom95.0

Labor Freedom90.7

Monetary Freedom81.8

Open Markets

Trade Freedom90.0

Investment Freedom85.0

Financial Freedom80.0

overall score81.6
-0.5
world rank3

#3 New Zealand

Read More About New ZealandNew Zealand’s modern and competitive economy benefits from a strong commitment to open-market policies that facilitate vibrant flows of trade and investment. Transparent and efficient regulations are applied evenly in most cases, encouraging dynamic entrepreneurial activity in the private sector. Financial markets, although relatively small, provide adequate access to financial resources.

Rule of Law

Property Rights95.0

Freedom From Corruption91.0

Limited Government

Government Spending46.0

Fiscal Freedom71.0

Regulatory Efficiency

Business Freedom91.4

Labor Freedom85.9

Monetary Freedom88.1

Open Markets

Trade Freedom87.2

Investment Freedom80.0

Financial Freedom80.0

overall score81.0
+0.5
world rank4

#4 Switzerland

Read More About SwitzerlandThe Swiss economy benefits from high levels of flexibility and institutional strengths that include strong protection of property rights and minimum tolerance for corruption. An independent and corruption-free judiciary enforces contracts effectively. Openness to global trade and investment has enabled Switzerland to become one the world’s most competitive and innovative economies.

Rule of Law

Property Rights90.0

Freedom From Corruption86.0

Limited Government

Government Spending66.3

Fiscal Freedom70.9

Regulatory Efficiency

Business Freedom82.2

Labor Freedom72.1

Monetary Freedom87.8

Open Markets

Trade Freedom90.0

Investment Freedom85.0

Financial Freedom80.0

overall score80.3
-1.1
world rank5

#5 Australia

Read More About AustraliaAustralia, a vibrant free-market democracy, has recorded impressive economic progress without undergoing a single recession for almost 25 years. In addition to its abundant natural resources, the economy has benefited from lasting entrepreneurial development facilitated by an effective system of government, a well-functioning legal system, and an independent bureaucracy.

Rule of Law

Property Rights90.0

Freedom From Corruption80.0

Limited Government

Government Spending62.0

Fiscal Freedom63.2

Regulatory Efficiency

Business Freedom89.4

Labor Freedom77.2

Monetary Freedom85.2

Open Markets

Trade Freedom86.4

Investment Freedom80.0

Financial Freedom90.0

overall score78.0
-1.1
world rank6

#6 Canada

Read More About CanadaCanada’s economic fundamentals remain strong, well supported by solid protection of property rights and an independent judiciary that enforces the rule of law effectively. The country’s commitment to open-market policies that facilitate global trade and investment flows has been strong, and the economy has demonstrated admirable resilience in the face of recent years’ international and domestic challenges.

Rule of Law

Property Rights90.0

Freedom From Corruption81.0

Limited Government

Government Spending50.4

Fiscal Freedom80.0

Regulatory Efficiency

Business Freedom81.8

Labor Freedom72.6

Monetary Freedom76.9

Open Markets

Trade Freedom87.0

Investment Freedom80.0

Financial Freedom80.0

overall score77.7
-0.8
world rank7

#7 Chile

Read More About ChileSeveral notable measures undertaken in recent years threaten Chile’s well-established tradition of economic freedom. Along with the introduction of redistributive tax measures, the corporate tax rate has been raised and is slated to rise further. Labor reforms have focused on increasing the minimum wage and strengthening union bargaining.

Rule of Law

Property Rights85.0

Freedom From Corruption73.0

Limited Government

Government Spending83.1

Fiscal Freedom74.8

Regulatory Efficiency

Business Freedom72.1

Labor Freedom64.3

Monetary Freedom82.9

Open Markets

Trade Freedom86.4

Investment Freedom85.0

Financial Freedom70.0

overall score77.3
+0.7
world rank8

#8 Ireland

Read More About IrelandThe Irish economy has made impressive progress over the past three years. Undertaking politically difficult reform measures, including sharp cuts in public-sector wages and restructuring of the banking sector, Ireland has regained its fiscal health and become the first country to exit a European Union bailout. Its economy is now one of the fastest-growing in the eurozone.

Rule of Law

Property Rights90.0

Freedom From Corruption74.0

Limited Government

Government Spending50.3

Fiscal Freedom73.6

Regulatory Efficiency

Business Freedom79.6

Labor Freedom72.1

Monetary Freedom85.5

Open Markets

Trade Freedom88.0

Investment Freedom90.0

Financial Freedom70.0

overall score77.2
+0.4
world rank9

#9 Estonia

Read More About EstoniaThe Estonian economy continues to benefit from the government’s strong commitment to economic freedom. The rule of law is enforced by an independent judicial system. A simplified tax system, dependable regulatory efficiency, and dynamic engagement with global commerce support the resilient and well-functioning economy.

Rule of Law

Property Rights90.0

Freedom From Corruption69.0

Limited Government

Government Spending54.9

Fiscal Freedom81.9

Regulatory Efficiency

Business Freedom79.0

Labor Freedom57.2

Monetary Freedom82.2

Open Markets

Trade Freedom88.0

Investment Freedom90.0

Financial Freedom80.0

overall score76.4
+0.6
world rank10

#10 United Kingdom

Read More About United KingdomEconomic freedom has been on an upward path in the United Kingdom over the past five years. Defying the eurozone crisis and regional uncertainty, the economy has demonstrated relatively high resilience. Disciplined fiscal adjustments have helped to restore economic dynamism, steadily reducing the budget deficit. The corporate tax has been cut from 28 percent to 20 percent.

Rule of Law

Property Rights90.0

Freedom From Corruption78.0

Limited Government

Government Spending39.0

Fiscal Freedom64.9

Regulatory Efficiency

Business Freedom86.0

Labor Freedom71.8

Monetary Freedom76.4

Open Markets

Trade Freedom88.0

Investment Freedom90.0

Financial Freedom80.0

Why Does Economic Freedom Matter?

Economic freedom is a crucial component of liberty. It empowers people to work, produce, consume, own, trade, and invest according to their personal choices.

Why Does Economic Freedom Matter? – from The Heritage Foundation's Understanding America series – explores the framework America's Founders established for an economically free nation, and what economic freedom means for the United States and the rest of the world.

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rank country overall change rank country overall change
1 Hong Kong 88.6 -1.0 4 Switzerland 81.0 +0.5
2 Singapore 87.8 -1.6 5 Australia 80.3 -1.1
3 New Zealand 81.6 -0.5

Mostly Free

rank country overall change rank country overall change
6 Canada 78.0 -1.1 23 Georgia 72.6 -0.4
7 Chile 77.7 -0.8 24 Finland 72.6 -0.8
8 Ireland 77.3 +0.7 25 United Arab Emirates 72.6 +0.2
9 Estonia 77.2 +0.4 26 Sweden 72.0 -0.7
10 United Kingdom 76.4 +0.6 27 South Korea 71.7 +0.2
11 United States 75.4 -0.8 28 Austria 71.7 +0.5
12 Denmark 75.3 -1.0 29 Malaysia 71.5 +0.7
13 Lithuania 75.2 +0.5 30 Botswana 71.1 +1.3
14 Taiwan 74.7 -0.4 31 The Bahamas 70.9 +2.2
15 Mauritius 74.7 -1.7 32 Norway 70.8 -1.0
16 The Netherlands 74.6 +0.9 33 Colombia 70.8 -0.9
17 Germany 74.4 +0.6 34 Qatar 70.7 -0.1
18 Bahrain 74.3 +0.9 35 Israel 70.7 +0.2
19 Luxembourg 73.9 +0.7 36 Latvia 70.4 +0.7
20 Iceland 73.3 +1.3 37 Macau 70.1 -0.2
21 Czech Republic 73.2 +0.7 38 Saint Lucia 70.0 -0.2
22 Japan 73.1 -0.2

Moderately Free

rank country overall change rank country overall change
39 Poland 69.3 +0.7 66 Panama 64.8 +0.7
40 Saint Vincent and the Grenadines 68.8 +0.8 67 Thailand 63.9 +1.5
41 Uruguay 68.8 +0.2 68 Kazakhstan 63.6 +0.3
42 Cyprus 68.7 +0.8 69 Samoa 63.5 +1.6
43 Spain 68.5 +0.9 70 Philippines 63.1 +0.9
44 Belgium 68.4 -0.4 71 Rwanda 63.1 -1.7
45 Barbados 68.3 +0.4 72 Ghana 63.0 0.0
46 Jordan 68.3 -1.0 73 Trinidad and Tobago 62.9 -1.2
47 Macedonia 67.5 +0.4 74 Kuwait 62.7 +0.2
48 Jamaica 67.5 -0.2 75 France 62.3 -0.2
49 Peru 67.4 -0.3 76 Seychelles 62.2 +4.7
50 Costa Rica 67.4 +0.2 77 Serbia 62.1 +2.1
51 Brunei Darussalam 67.3 -1.6 78 Saudi Arabia 62.1 0.0
52 Oman 67.1 +0.4 79 Turkey 62.1 -1.1
53 Dominica 67.0 +0.9 80 South Africa 61.9 -0.7
54 Armenia 67.0 -0.1 81 Namibia 61.9 +2.3
55 Malta 66.7 +0.2 82 Guatemala 61.8 +1.4
56 Slovakia 66.6 -0.6 83 Paraguay 61.5 +0.4
57 Cabo Verde 66.5 +0.1 84 Kosovo 61.4 N/A
58 Hungary 66.0 -0.8 85 Morocco 61.3 +1.2
59 Albania 65.9 +0.2 86 Italy 61.2 -0.5
60 Bulgaria 65.9 -0.9 87 Madagascar 61.1 -0.6
61 Romania 65.6 -1.0 88 Dominican Republic 61.0 0.0
62 Mexico 65.2 -1.2 89 Vanuatu 60.8 -0.3
63 El Salvador 65.1 -0.6 90 Slovenia 60.6 +0.3
64 Portugal 65.1 -0.2 91 Azerbaijan 60.2 -0.8
65 Montenegro 64.9 +0.2 92 Côte d'Ivoire 60.0 +1.5

Mostly Unfree

rank country overall change rank country overall change
93 Sri Lanka 59.9 +1.3 124 Djibouti 56.0 -1.5
94 Swaziland 59.7 -0.2 125 Egypt 56.0 +0.8
95 Tonga 59.6 +0.3 126 Pakistan 55.9 +0.3
96 Kyrgyz Republic 59.6 -1.7 127 Guyana 55.4 -0.1
97 Bhutan 59.5 +2.1 128 Mauritania 54.8 +1.5
98 Lebanon 59.5 +0.2 129 Niger 54.3 -0.3
99 Indonesia 59.4 +1.3 130 Cameroon 54.2 +2.3
100 Mongolia 59.4 +0.2 131 Vietnam 54.0 +2.3
101 Benin 59.3 +0.5 132 Maldives 53.9 +0.5
102 Uganda 59.3 -0.4 133 Burundi 53.9 +0.2
103 Croatia 59.1 -2.4 134 Suriname 53.8 -0.4
104 Burkina Faso 59.1 +0.5 135 Togo 53.6 +0.6
105 Gabon 59.0 +0.7 136 Guinea 53.3 +1.2
106 Zambia 58.8 +0.1 137 Bangladesh 53.3 -0.6
107 Fiji 58.8 -0.2 138 Greece 53.2 -0.8
108 Bosnia and Herzegovina 58.6 -0.4 139 Mozambique 53.2 -1.6
109 Nicaragua 58.6 +1.0 140 Papua New Guinea 53.2 +0.1
110 Tanzania 58.5 +1.0 141 Comoros 52.4 +0.3
111 Senegal 58.1 +0.3 142 Sierra Leone 52.3 +0.6
112 Cambodia 57.9 +0.4 143 Liberia 52.2 -0.5
113 Honduras 57.7 +0.3 144 China 52.0 -0.7
114 Tunisia 57.6 -0.1 145 Guinea-Bissau 51.8 -0.2
115 Kenya 57.5 +1.9 146 Malawi 51.8 -3.0
116 Nigeria 57.5 +1.9 147 Micronesia 51.8 +2.2
117 Moldova 57.4 -0.1 148 Ethiopia 51.5 0.0
118 Belize 57.4 +0.6 149 Tajikistan 51.3 -1.4
119 The Gambia 57.1 -0.4 150 Haiti 51.3 0.0
120 São Tomé and Príncipe 56.7 +3.4 151 Nepal 50.9 -0.4
121 Mali 56.5 +0.1 152 Lesotho 50.6 +1.0
122 Brazil 56.5 -0.1 153 Russia 50.6 -1.5
123 India 56.2 +1.6 154 Algeria 50.1 +1.2

Repressed

rank country overall change rank country overall change
155 Laos 49.8 -1.6 167 Timor-Leste 45.8 +0.3
156 Angola 48.9 +1.0 168 Central African Republic 45.2 -0.7
157 Belarus 48.8 -1.0 169 Argentina 43.8 -0.3
158 Burma 48.7 +1.8 170 Equatorial Guinea 43.7 +3.3
159 Ecuador 48.6 -0.6 171 Iran 43.5 +1.7
160 Bolivia 47.4 +0.6 172 Republic of Congo 42.8 +0.1
161 Solomon Islands 47.0 0.0 173 Eritrea 42.7 +3.8
162 Ukraine 46.8 -0.1 174 Turkmenistan 41.9 +0.5
163 Democratic Republic of Congo 46.4 +1.4 175 Zimbabwe 38.2 +0.6
164 Chad 46.3 +0.4 176 Venezuela 33.7 -0.6
165 Kiribati 46.2 -0.2 177 Cuba 29.8 +0.2
166 Uzbekistan 46.0 -1.0 178 North Korea 2.3 +1.0

Not Ranked

rank country overall change rank country overall change
N/A Afghanistan N/A N/A N/A Somalia N/A N/A
N/A Iraq N/A N/A N/A Sudan N/A N/A
N/A Libya N/A N/A N/A Syria N/A N/A
N/A Liechtenstein N/A N/A N/A Yemen N/A N/A

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