The Economic Freedom Index is a measure used globally to measure the level of economic freedom in countries. This index helps to tell if citizens of a country are truly free economically. The higher the national value, the better.
In measuring Economic Freedom, property rights, freedom of trade, government regulation, fiscal policy, and monetary stability are considered as key determinants.
The index is often compiled by organizations like the Heritage Foundation and the Fraser Institute and provides a numerical score to each country, indicating its economic freedom level.
Economic freedom has been found to bring numerous benefits to a country’s economy and its citizens. Here are five key advantages:
- Economic Growth: Higher economic freedom fosters entrepreneurship, investment, and innovation, leading to increased productivity and economic growth. Free markets and limited government intervention encourage competition and allow resources to be allocated efficiently.
- Prosperity and Higher Incomes: Economic freedom promotes greater prosperity by providing individuals and businesses with the opportunity to thrive. It leads to higher incomes, improved living standards, and reduced poverty rates. Free markets create jobs, stimulate wealth creation, and increase the overall standard of living.
- Individual Liberty: Economic freedom is closely linked to individual liberty and personal autonomy. It allows individuals to make economic choices based on their preferences and voluntary transactions. Economic freedom protects property rights, contracts, and the rule of law, fostering an environment of individual rights and freedoms.
- Foreign Investment and Trade: Countries with higher economic freedom levels tend to attract more foreign direct investment (FDI) and experience increased trade flows. This is because economic freedom ensures a stable and predictable business environment, low barriers to entry, and protection of property rights, making it attractive for international investors and trading partners.
- Better Governance and Reduced Corruption: Economic freedom is associated with better governance practices and reduced corruption. Limited government intervention and regulation provide fewer opportunities for corruption, as the discretionary power of government officials is minimized. It encourages transparency, accountability, and good governance practices, leading to more efficient and effective public administration.
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What is the current 2023 Economic freedom index per country?
The current Economic Index ranks Singapore in the number one position with an index value of 83.9 followed by Switzerland: 83.8, Ireland: 82.0, Taiwan: 80.7, New Zealand: 78.9, Estonia: 78.6
and Luxembourg: 78.4 in that other. Be.low is the full list of the best-ranked countries globally.
🇸🇬 Singapore: 83.9
🇨🇭 Switzerland: 83.8
🇮🇪 Ireland: 82.0
🇹🇼 Taiwan: 80.7
🇳🇿 New Zealand: 78.9
🇪🇪 Estonia: 78.6
🇱🇺 Luxembourg: 78.4
🇳🇱 Netherlands: 78.0
🇩🇰 Denmark: 77.6
🇸🇪 Sweden: 77.5
🇫🇮 Finland: 77.1
🇳🇴 Norway: 76.9
🇦🇺 Australia: 74.8
🇩🇪 Germany: 73.7
🇰🇷 South Korea: 73.7
🇨🇦 Canada: 73.7
🇱🇻 Latvia: 72.8
🇨🇾 Cyprus: 72.3
🇮🇸 Iceland: 72.2
🇱🇹 Lithuania: 72.2
🇦🇹 Austria: 71.1
🇨🇱 Chile: 71.1
🇦🇪 UAE: 70.9
🇺🇸 USA: 70.6
🇬🇧 UK: 69.9
🇯🇵 Japan: 69.3
🇮🇱 Israel: 68.9
🇵🇱 Poland: 67.7
🇧🇪 Belgium: 67.1
🇪🇸 Spain: 65.0
🇫🇷 France: 63.6
🇮🇩 Indonesia: 63.5
🇲🇽 Mexico: 63.2
🇨🇴 Colombia: 63.1
🇮🇹 Italy: 62.3
🇰🇿 Kazakhstan: 62.1
🇹🇭 Thailand: 60.6
🇵🇭 Philippines: 59.3
🇸🇦 Saudi Arabia: 58.3
🇹🇷 Turkey: 56.9
🇰🇭 Cambodia: 56.5
🇿🇦 South Africa: 55.7
🇧🇩 Bangladesh: 54.4
🇳🇬 Nigeria: 53.9
🇷🇺 Russia: 53.8
🇧🇷 Brazil: 53.5
🇮🇳 India: 52.9
🇱🇰 Sri Lanka: 52.2
🇳🇵 Nepal: 51.4
🇦🇷 Argentina: 51.0
🇪🇬 Egypt: 49.6
🇵🇰 Pakistan: 49.4
🇨🇳 China: 48.3
🇲🇲 Myanmar: 46.5
🇮🇷 Iran: 42.2
🇻🇪 Venezuela: 25.8
🇨🇺 Cuba: 24.3
🇰🇵 North Korea: 2.9
*assessed factors such as trade, investment, property rights, and government intervention in the economy.