2013 Index of Economic Freedom

Country Rankings

overall score89.3
-0.6
world rank1

#1 Hong Kong

Read More About Hong KongHong Kong’s economic freedom score of 89.3 keeps it atop the Index rankings for the 19th consecutive year. Its overall score is 0.6 point lower than last year, mainly due to increased government spending relative to GDP and an increase in inflation. Hong Kong is ranked 1st out of 41 countries in the Asia–Pacific region and 1st in the world.

Rule of Law

Property Rights90.0

Freedom From Corruption84.0

Limited Government

Government Spending88.9

Fiscal Freedom92.9

Regulatory Efficiency

Business Freedom98.9

Labor Freedom86.2

Monetary Freedom82.1

Open Markets

Trade Freedom90.0

Investment Freedom90.0

Financial Freedom90.0

overall score88.0
+0.5
world rank2

#2 Singapore

Read More About SingaporeSingapore’s economic freedom score is 88, making its economy the 2nd freest in the 2013 Index. Its score is 0.5 point higher than last year, with an advancement in financial freedom outweighing small deteriorations in five other economic freedoms. Singapore is ranked 2nd out of 41 countries in the Asia–Pacific region.

Rule of Law

Property Rights90.0

Freedom From Corruption92.0

Limited Government

Government Spending91.3

Fiscal Freedom91.1

Regulatory Efficiency

Business Freedom97.1

Labor Freedom91.4

Monetary Freedom82.0

Open Markets

Trade Freedom90.0

Investment Freedom75.0

Financial Freedom80.0

overall score82.6
-0.5
world rank3

#3 Australia

Read More About AustraliaAustralia’s economic freedom score is 82.6, making its economy the 3rd freest in the 2013 Index. Its overall score is 0.5 point lower than last year, with score gains in freedom from corruption and business freedom offset by declines in labor freedom and the management of government spending. Australia is ranked 3rd out of 41 countries in the Asia–Pacific region, and its score is well above the regional and world averages.

Rule of Law

Property Rights90.0

Freedom From Corruption88.0

Limited Government

Government Spending62.8

Fiscal Freedom66.4

Regulatory Efficiency

Business Freedom95.5

Labor Freedom83.5

Monetary Freedom83.8

Open Markets

Trade Freedom86.2

Investment Freedom80.0

Financial Freedom90.0

overall score81.4
-0.7
world rank4

#4 New Zealand

Read More About New ZealandNew Zealand’s economic freedom score is 81.4, making its economy the 4th freest in the 2013 Index. Its score is 0.7 point worse than last year, reflecting declines in the control of government spending and monetary freedom that outweigh improvements in investment freedom and freedom from corruption. New Zealand is ranked 4th out of 41 countries in the Asia–Pacific region.

Rule of Law

Property Rights95.0

Freedom From Corruption95.0

Limited Government

Government Spending33.2

Fiscal Freedom71.5

Regulatory Efficiency

Business Freedom99.9

Labor Freedom89.5

Monetary Freedom83.3

Open Markets

Trade Freedom86.8

Investment Freedom80.0

Financial Freedom80.0

overall score81.0
-0.1
world rank5

#5 Switzerland

Read More About SwitzerlandSwitzerland’s economic freedom score is 81, making its economy the 5th freest in the 2013 Index. Its score is essentially the same as last year, with modest declines in business freedom and the management of government spending counterbalanced by improvements in monetary freedom and freedom from corruption. Switzerland is ranked 1st out of 43 countries in the Europe region.

Rule of Law

Property Rights90.0

Freedom From Corruption88.0

Limited Government

Government Spending63.8

Fiscal Freedom68.1

Regulatory Efficiency

Business Freedom75.8

Labor Freedom87.9

Monetary Freedom86.2

Open Markets

Trade Freedom90.0

Investment Freedom80.0

Financial Freedom80.0

overall score79.4
-0.5
world rank6

#6 Canada

Read More About CanadaCanada’s economic freedom score is 79.4, making its economy the 6th freest in the 2013 Index. Its overall score is 0.5 point lower than last year, reflecting declines in freedom from corruption and business freedom that are only partially offset by a notable improvement in the management of public spending. Canada continues to be the freest economy in the North America region.

Rule of Law

Property Rights90.0

Freedom From Corruption87.0

Limited Government

Government Spending44.8

Fiscal Freedom79.8

Regulatory Efficiency

Business Freedom91.7

Labor Freedom82.3

Monetary Freedom75.2

Open Markets

Trade Freedom88.2

Investment Freedom75.0

Financial Freedom80.0

overall score79.0
+0.7
world rank7

#7 Chile

Read More About ChileChile’s economic freedom score is 79, making its economy the 7th freest in the 2013 Index. Its overall score is 0.7 point better than last year, mainly due to improved scores in investment and business freedoms. Continuing to be one of the 10 freest economies in the Index, Chile enjoys the highest degree of economic freedom in the South and Central America/Caribbean region.

Rule of Law

Property Rights90.0

Freedom From Corruption72.0

Limited Government

Government Spending83.7

Fiscal Freedom77.6

Regulatory Efficiency

Business Freedom70.5

Labor Freedom74.2

Monetary Freedom84.6

Open Markets

Trade Freedom82.0

Investment Freedom85.0

Financial Freedom70.0

overall score76.9
-0.1
world rank8

#8 Mauritius

Read More About MauritiusMauritius’s economic freedom score is 76.9, making its economy the 8th freest in the 2013 Index. Its overall score is essentially the same as last year, with improvements in property rights and labor freedom counterbalanced by declines in freedom from corruption and monetary freedom. Mauritius is ranked 1st out of 46 countries in the Sub-Saharan African region.

Rule of Law

Property Rights70.0

Freedom From Corruption51.0

Limited Government

Government Spending81.9

Fiscal Freedom92.1

Regulatory Efficiency

Business Freedom78.2

Labor Freedom72.3

Monetary Freedom75.4

Open Markets

Trade Freedom87.9

Investment Freedom90.0

Financial Freedom70.0

overall score76.1
-0.1
world rank9

#9 Denmark

Read More About DenmarkDenmark’s economic freedom score is 76.1, making its economy the 9th freest in the 2013 Index. Its overall score is essentially the same as last year, with modest improvements in the management of public spending and freedom from corruption counterbalanced by declines in labor and investment freedoms. Trailing Switzerland, Denmark is ranked 2nd out of 43 countries in the Europe region.

Rule of Law

Property Rights90.0

Freedom From Corruption94.0

Limited Government

Government Spending5.9

Fiscal Freedom39.8

Regulatory Efficiency

Business Freedom98.4

Labor Freedom91.1

Monetary Freedom80.0

Open Markets

Trade Freedom86.8

Investment Freedom85.0

Financial Freedom90.0

overall score76.0
-0.3
world rank10

#10 United States

Read More About United StatesThe United States, with an economic freedom score of 76, has lost ground again in the 2013 Index. Its score is 0.3 point lower than last year, with declines in monetary freedom, business freedom, labor freedom, and fiscal freedom. The U.S. is ranked 2nd out of three countries in the North America region, and its score remains well above the world and regional averages.

Rule of Law

Property Rights85.0

Freedom From Corruption71.0

Limited Government

Government Spending47.8

Fiscal Freedom69.3

Regulatory Efficiency

Business Freedom90.5

Labor Freedom95.5

Monetary Freedom75.0

Open Markets

Trade Freedom86.4

Investment Freedom70.0

Financial Freedom70.0

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 89.3 -0.6 4 New Zealand 81.4 -0.7
2 Singapore 88.0 +0.5 5 Switzerland 81.0 -0.1
3 Australia 82.6 -0.5

Mostly Free

rank country overall change rank country overall change
6 Canada 79.4 -0.5 21 Georgia 72.2 +2.8
7 Chile 79.0 +0.7 22 Lithuania 72.1 +0.6
8 Mauritius 76.9 -0.1 23 Iceland 72.1 +1.2
9 Denmark 76.1 -0.1 24 Japan 71.8 +0.2
10 United States 76.0 -0.3 25 Austria 71.8 +1.5
11 Ireland 75.7 -1.2 26 Macau 71.7 -0.1
12 Bahrain 75.5 +0.3 27 Qatar 71.3 0.0
13 Estonia 75.3 +2.1 28 United Arab Emirates 71.1 +1.8
14 United Kingdom 74.8 +0.7 29 Czech Republic 70.9 +1.0
15 Luxembourg 74.2 -0.3 30 Botswana 70.6 +1.0
16 Finland 74.0 +1.7 31 Norway 70.5 +1.7
17 The Netherlands 73.5 +0.2 32 Saint Lucia 70.4 -0.9
18 Sweden 72.9 +1.2 33 Jordan 70.4 +0.5
19 Germany 72.8 +1.8 34 South Korea 70.3 +0.4
20 Taiwan 72.7 +0.8 35 The Bahamas 70.1 +2.1

Moderately Free

rank country overall change rank country overall change
36 Uruguay 69.7 -0.2 61 Thailand 64.1 -0.8
37 Colombia 69.6 +1.6 62 France 64.1 +0.9
38 Armenia 69.4 +0.6 63 Rwanda 64.1 -0.8
39 Barbados 69.3 +0.3 64 Dominica 63.9 +2.3
40 Belgium 69.2 +0.2 65 Cape Verde 63.7 +0.2
41 Cyprus 69.0 -2.8 66 Kuwait 63.1 +0.6
42 Slovakia 68.7 +1.7 67 Portugal 63.1 +0.1
43 Macedonia 68.2 -0.3 68 Kazakhstan 63.0 -0.6
44 Peru 68.2 -0.5 69 Turkey 62.9 +0.4
45 Oman 68.1 +0.2 70 Montenegro 62.6 +0.1
46 Spain 68.0 -1.1 71 Panama 62.5 -2.7
47 Malta 67.5 +0.5 72 Trinidad and Tobago 62.3 -2.1
48 Hungary 67.3 +0.2 73 Madagascar 62.0 -0.4
49 Costa Rica 67.0 -1.0 74 South Africa 61.8 -0.9
50 Mexico 67.0 +1.7 75 Mongolia 61.7 +0.2
51 Israel 66.9 -0.9 76 Slovenia 61.7 -1.2
52 Jamaica 66.8 +1.7 77 Ghana 61.3 +0.6
53 El Salvador 66.7 -2.0 78 Croatia 61.3 +0.4
54 Saint Vincent and the Grenadines 66.7 +0.2 79 Uganda 61.1 -0.8
55 Latvia 66.5 +1.3 80 Paraguay 61.1 -0.7
56 Malaysia 66.1 -0.3 81 Sri Lanka 60.7 +2.4
57 Poland 66.0 +1.8 82 Saudi Arabia 60.6 -1.9
58 Albania 65.2 +0.1 83 Italy 60.6 +1.8
59 Romania 65.1 +0.7 84 Namibia 60.3 -1.6
60 Bulgaria 65.0 +0.3 85 Guatemala 60.0 -0.9

Mostly Unfree

rank country overall change rank country overall change
86 Burkina Faso 59.9 -0.7 116 Senegal 55.5 +0.1
87 Dominican Republic 59.7 -0.5 117 Greece 55.4 0.0
88 Azerbaijan 59.7 +0.8 118 Malawi 55.3 -1.1
89 Kyrgyz Republic 59.6 -0.6 119 India 55.2 +0.6
90 Morocco 59.6 -0.6 120 Nigeria 55.1 -1.2
91 Lebanon 59.5 -0.6 121 Pakistan 55.1 +0.4
92 The Gambia 58.8 0.0 122 Bhutan 55.0 -1.6
93 Zambia 58.7 +0.4 123 Mozambique 55.0 -2.1
94 Serbia 58.6 +0.6 124 Seychelles 54.9 +1.9
95 Cambodia 58.5 +0.9 125 Egypt 54.8 -3.1
96 Honduras 58.4 -0.4 126 Côte d'Ivoire 54.1 -0.2
97 The Philippines 58.2 +1.1 127 Djibouti 53.9 0.0
98 Tanzania 57.9 +0.9 128 Niger 53.9 -0.4
99 Gabon 57.8 +1.4 129 Guyana 53.8 +2.5
100 Brazil 57.7 -0.2 130 Papua New Guinea 53.6 -0.2
101 Benin 57.6 +1.9 131 Tajikistan 53.4 0.0
102 Belize 57.3 -4.6 132 Bangladesh 52.6 -0.6
103 Bosnia and Herzegovina 57.3 0.0 133 Cameroon 52.3 +0.5
104 Swaziland 57.2 0.0 134 Mauritania 52.3 -0.7
105 Fiji 57.2 -0.1 135 Suriname 52.0 -0.6
106 Samoa 57.1 -3.4 136 China 51.9 +0.7
107 Tunisia 57.0 -1.6 137 Guinea 51.2 +0.4
108 Indonesia 56.9 +0.5 138 Guinea-Bissau 51.1 +1.0
109 Vanuatu 56.6 0.0 139 Russia 51.1 +0.6
110 Nicaragua 56.6 -1.3 140 Vietnam 51.0 -0.3
111 Mali 56.4 +0.6 141 Nepal 50.4 +0.2
112 Tonga 56.0 -1.0 142 Central African Republic 50.4 +0.1
113 Yemen 55.9 +0.6 143 Micronesia 50.1 -0.6
114 Kenya 55.9 -1.6 144 Laos 50.1 +0.1
115 Moldova 55.5 +1.1

Repressed

rank country overall change rank country overall change
145 Algeria 49.6 -1.4 162 Uzbekistan 46.0 +0.2
146 Ethiopia 49.4 -2.6 163 Kiribati 45.9 -1.0
147 Liberia 49.3 +0.7 164 Chad 45.2 +0.4
148 Burundi 49.0 +0.9 165 Solomon Islands 45.0 -1.2
149 Maldives 49.0 -0.2 166 Timor-Leste 43.7 +0.4
150 Togo 48.8 +0.5 167 Republic of Congo 43.5 -0.3
151 Sierra Leone 48.3 -0.8 168 Iran 43.2 +0.9
152 Haiti 48.1 -2.6 169 Turkmenistan 42.6 -1.2
153 São Tomé and Príncipe 48.0 -2.2 170 Equatorial Guinea 42.3 -0.5
154 Belarus 48.0 -1.0 171 Democratic Republic of Congo 39.6 -1.5
155 Lesotho 47.9 +1.3 172 Burma 39.2 +0.5
156 Bolivia 47.9 -2.3 173 Eritrea 36.3 +0.1
157 Comoros 47.5 +1.8 174 Venezuela 36.1 -2.0
158 Angola 47.3 +0.6 175 Zimbabwe 28.6 +2.3
159 Ecuador 46.9 -1.4 176 Cuba 28.5 +0.2
160 Argentina 46.7 -1.3 177 North Korea 1.5 +0.5
161 Ukraine 46.3 +0.2

Not Ranked

rank country overall change rank country overall change
N/A Afghanistan N/A N/A N/A Liechtenstein N/A N/A
N/A Iraq N/A N/A N/A Somalia N/A N/A
N/A Kosovo 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

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