Hong Kong and Singapore have again been ranked as the most economically free jurisdictions in the world, with the United States (U.S.) back in the top ten, according to the Fraser Institute’s annual Economic Freedom of the World report for 2018. The Fraser Institute produces the annual Economic Freedom of the World report in cooperation with the Economic Freedom Network, a group of independent research and educational institutes in nearly one hundred countries and territories. It’s the world’s premier measurement of economic freedom.
“While Hong Kong is still the most economically free, there is a valid concern that interference from mainland China—which ranks 108th in economic freedom—will ultimately lead to deterioration in Hong Kong’s top position, particularly in rule of law, which helps ensure equal freedom for all,” said Fred McMahon, Dr. Michael A. Walker Research Chair in Economic Freedom with the Fraser Institute.
Rounding out the top ten are New Zealand, Switzerland, Ireland, the United States, Georgia, Mauritius, the United Kingdom, and Australia and Canada tied at tenth place. The United States is ranked at sixth, entering the top ten most-economically free countries for the first time since 2009.
The report measures the economic freedom—the ability of individuals to make their own economic decisions—by analyzing the policies and institutions of 162 countries and territories. These include regulation, freedom to trade internationally, size of government, sound legal system and property rights, and government spending and taxation. The 2018 report is based on data from 2016, the last year of available comparable statistics.
“Where people are free to pursue their own opportunities and make their own choices, they lead more prosperous, happier and healthier lives,” Mr. McMahon said.