2014 Index of Economic Freedom

Country Rankings

overall score90.1
+0.8
world rank1

#1 Hong Kong

Read More About Hong KongHong Kong’s economic freedom score is 90.1, making it the top-rated economy in the Index for the 20th consecutive year. Its overall score is slightly better than last year due to improvements in government size and regulatory efficiency that offset a decline in freedom from corruption. Hong Kong is ranked 1st out of 42 countries in the Asia–Pacific region and 1st in the world.

Rule of Law

Property Rights90.0

Freedom From Corruption82.3

Limited Government

Government Spending89.7

Fiscal Freedom93.0

Regulatory Efficiency

Business Freedom98.9

Labor Freedom95.5

Monetary Freedom82.0

Open Markets

Trade Freedom90.0

Investment Freedom90.0

Financial Freedom90.0

overall score89.4
+1.4
world rank2

#2 Singapore

Read More About SingaporeSingapore’s economic freedom score is 89.4, making its economy the 2nd freest in the 2014 Index. Its score is 1.4 points better than last year, reflecting improvements in investment freedom and labor freedom that outweigh small declines in monetary freedom and business freedom. Singapore is ranked 2nd out of 42 countries in the Asia–Pacific region.

Rule of Law

Property Rights90.0

Freedom From Corruption91.9

Limited Government

Government Spending91.2

Fiscal Freedom91.2

Regulatory Efficiency

Business Freedom96.8

Labor Freedom96.5

Monetary Freedom81.5

Open Markets

Trade Freedom90.0

Investment Freedom85.0

Financial Freedom80.0

overall score82.0
-0.6
world rank3

#3 Australia

Read More About AustraliaAustralia’s economic freedom score is 82, making its economy the 3rd freest in the 2014 Index. Its overall score is 0.6 point lower than last year, with a gain in investment freedom outweighed by declines in monetary freedom and labor freedom. Australia is ranked 3rd out of 42 countries in the Asia–Pacific region.

Rule of Law

Property Rights90.0

Freedom From Corruption87.7

Limited Government

Government Spending62.6

Fiscal Freedom64.2

Regulatory Efficiency

Business Freedom94.6

Labor Freedom79.2

Monetary Freedom80.5

Open Markets

Trade Freedom86.4

Investment Freedom85.0

Financial Freedom90.0

overall score81.6
+0.6
world rank4

#4 Switzerland

Read More About SwitzerlandSwitzerland’s economic freedom score is 81.6, making its economy the 4th freest for the first time ever in the 2014 Index. Its score is 0.6 point higher than last year, with improvements in trade freedom and the management of public spending partially offset by declines in monetary freedom and labor freedom. Switzerland is ranked 1st out of 43 countries in the Europe region.

Rule of Law

Property Rights90.0

Freedom From Corruption88.1

Limited Government

Government Spending65.7

Fiscal Freedom68.9

Regulatory Efficiency

Business Freedom75.4

Labor Freedom87.4

Monetary Freedom85.2

Open Markets

Trade Freedom90.0

Investment Freedom85.0

Financial Freedom80.0

overall score81.2
-0.2
world rank5

#5 New Zealand

Read More About New ZealandNew Zealand’s economic freedom score is 81.2, making its economy the 5th freest in the 2014 Index. Its score is slightly lower than last year, reflecting modest declines in four economic freedoms, including business freedom and freedom from corruption, that outweigh improvements in monetary freedom and labor freedom. New Zealand is ranked 4th out of 42 countries in the Asia–Pacific region.

Rule of Law

Property Rights95.0

Freedom From Corruption94.0

Limited Government

Government Spending32.3

Fiscal Freedom71.2

Regulatory Efficiency

Business Freedom96.1

Labor Freedom90.2

Monetary Freedom86.3

Open Markets

Trade Freedom86.8

Investment Freedom80.0

Financial Freedom80.0

overall score80.2
+0.8
world rank6

#6 Canada

Read More About CanadaCanada’s economic freedom score is 80.2, making its economy the 6th freest in the 2014 Index. Its overall score is 0.8 point better than last year, reflecting improvements in investment freedom, the management of government spending, and monetary freedom. Canada continues to be the freest economy in the North America region.

Rule of Law

Property Rights90.0

Freedom From Corruption87.7

Limited Government

Government Spending47.3

Fiscal Freedom79.7

Regulatory Efficiency

Business Freedom89.3

Labor Freedom83.1

Monetary Freedom76.3

Open Markets

Trade Freedom88.3

Investment Freedom80.0

Financial Freedom80.0

overall score78.7
-0.3
world rank7

#7 Chile

Read More About ChileChile’s economic freedom score is 78.7, making its economy the 7th freest in the 2014 Index. Its overall score is slightly lower than last year, with an improvement in investment freedom offset by combined declines in labor freedom, business freedom, and fiscal freedom. Continuing as 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 Corruption72.3

Limited Government

Government Spending83.8

Fiscal Freedom76.5

Regulatory Efficiency

Business Freedom69.3

Labor Freedom69.3

Monetary Freedom84.1

Open Markets

Trade Freedom82.0

Investment Freedom90.0

Financial Freedom70.0

overall score76.5
-0.4
world rank8

#8 Mauritius

Read More About MauritiusMauritius’s economic freedom score is 76.5, making its economy the 8th freest in the 2014 Index. Its overall score is 0.4 point lower than last year, with declines in investment freedom, property rights, and business freedom that outweigh improvements in labor freedom, freedom from corruption, and monetary freedom. Mauritius is ranked 1st out of 46 countries in the Sub-Saharan Africa region.

Rule of Law

Property Rights65.0

Freedom From Corruption53.4

Limited Government

Government Spending81.8

Fiscal Freedom92.2

Regulatory Efficiency

Business Freedom74.4

Labor Freedom78.0

Monetary Freedom76.7

Open Markets

Trade Freedom88.6

Investment Freedom85.0

Financial Freedom70.0

overall score76.2
+0.5
world rank9

#9 Ireland

Read More About IrelandIreland’s economic freedom score is 76.2, making its economy the 9th freest in the 2014 Index. Its score has increased by 0.5 point from last year due to improvements in trade freedom, labor freedom, and the management of public finance that offset small declines in monetary freedom and freedom from corruption. The Irish economy has become the second freest economy in the Europe region and has regained a place among the world’s top 10 freest economies.

Rule of Law

Property Rights90.0

Freedom From Corruption74.8

Limited Government

Government Spending30.6

Fiscal Freedom74.0

Regulatory Efficiency

Business Freedom83.4

Labor Freedom79.5

Monetary Freedom81.7

Open Markets

Trade Freedom87.8

Investment Freedom90.0

Financial Freedom70.0

overall score76.1
0.0
world rank10

#10 Denmark

Read More About DenmarkDenmark’s economic freedom score is 76.1, making its economy the 10th freest in the 2014 Index. Its overall score is the same as last year, with improvements in investment freedom and trade freedom counterbalanced by declines in the management of public spending and fiscal freedom. Trailing Switzerland and Ireland, Denmark is ranked 3rd out of 43 countries in the Europe region.

Rule of Law

Property Rights90.0

Freedom From Corruption93.7

Limited Government

Government Spending0.5

Fiscal Freedom39.3

Regulatory Efficiency

Business Freedom98.1

Labor Freedom91.2

Monetary Freedom80.0

Open Markets

Trade Freedom87.8

Investment Freedom90.0

Financial Freedom90.0

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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Free

rank country overall change rank country overall change
1 Hong Kong 90.1 +0.8 4 Switzerland 81.6 +0.6
2 Singapore 89.4 +1.4 5 New Zealand 81.2 -0.2
3 Australia 82.0 -0.6 6 Canada 80.2 +0.8

Mostly Free

rank country overall change rank country overall change
7 Chile 78.7 -0.3 21 Lithuania 73.0 +0.9
8 Mauritius 76.5 -0.4 22 Georgia 72.6 +0.4
9 Ireland 76.2 +0.5 23 Iceland 72.4 +0.3
10 Denmark 76.1 0.0 24 Austria 72.4 +0.6
11 Estonia 75.9 +0.6 25 Japan 72.4 +0.6
12 United States 75.5 -0.5 26 Czech Republic 72.2 +1.3
13 Bahrain 75.1 -0.4 27 Botswana 72.0 +1.4
14 United Kingdom 74.9 +0.1 28 United Arab Emirates 71.4 +0.3
15 The Netherlands 74.2 +0.7 29 Macau 71.3 -0.4
16 Luxembourg 74.2 0.0 30 Qatar 71.2 -0.1
17 Taiwan 73.9 +1.2 31 South Korea 71.2 +0.9
18 Germany 73.4 +0.6 32 Norway 70.9 +0.4
19 Finland 73.4 -0.6 33 Saint Lucia 70.7 +0.3
20 Sweden 73.1 +0.2 34 Colombia 70.7 +1.1

Moderately Free

rank country overall change rank country overall change
35 Belgium 69.9 +0.7 63 Dominica 65.2 +1.3
36 The Bahamas 69.8 -0.3 64 Turkey 64.9 +2.0
37 Malaysia 69.6 +3.5 65 Rwanda 64.7 +0.6
38 Uruguay 69.3 -0.4 66 Ghana 64.2 +2.9
39 Jordan 69.2 -1.2 67 Kazakhstan 63.7 +0.7
40 Brunei Darussalam 69.0 N/A 68 Montenegro 63.6 +1.0
41 Armenia 68.9 -0.5 69 Portugal 63.5 +0.4
42 Latvia 68.7 +2.2 70 France 63.5 -0.6
43 Macedonia 68.6 +0.4 71 Panama 63.4 +0.9
44 Israel 68.4 +1.5 72 Thailand 63.3 -0.8
45 Barbados 68.3 -1.0 73 Trinidad and Tobago 62.7 +0.4
46 Cyprus 67.6 -1.4 74 Slovenia 62.7 +1.0
47 Peru 67.4 -0.8 75 South Africa 62.5 +0.7
48 Oman 67.4 -0.7 76 Kuwait 62.3 -0.8
49 Spain 67.2 -0.8 77 Saudi Arabia 62.2 +1.6
50 Poland 67.0 +1.0 78 Paraguay 62.0 +0.9
51 Hungary 67.0 -0.3 79 Madagascar 61.7 -0.3
52 Saint Vincent and the Grenadines 67.0 +0.3 80 Dominican Republic 61.3 +1.6
53 Costa Rica 66.9 -0.1 81 Azerbaijan 61.3 +1.6
54 Albania 66.9 +1.7 82 Swaziland 61.2 +4.0
55 Mexico 66.8 -0.2 83 Guatemala 61.2 +1.2
56 Jamaica 66.7 -0.1 84 Samoa 61.1 +4.0
57 Slovakia 66.4 -2.3 85 Kyrgyz Republic 61.1 +1.5
58 Malta 66.4 -1.1 86 Italy 60.9 +0.3
59 El Salvador 66.2 -0.5 87 Croatia 60.4 -0.9
60 Cape Verde 66.1 +2.4 88 Zambia 60.4 +1.7
61 Bulgaria 65.7 +0.7 89 The Philippines 60.1 +1.9
62 Romania 65.5 +0.4 90 Sri Lanka 60.0 -0.7

Mostly Unfree

rank country overall change rank country overall change
91 Uganda 59.9 -1.2 122 Mali 55.5 -0.9
92 The Gambia 59.5 +0.7 123 Yemen 55.5 -0.4
93 Vanuatu 59.5 +2.9 124 Malawi 55.4 +0.1
94 Namibia 59.4 -0.9 125 Senegal 55.4 -0.1
95 Serbia 59.4 +0.8 126 Pakistan 55.2 +0.1
96 Lebanon 59.4 -0.1 127 Niger 55.1 +1.2
97 Mongolia 58.9 -2.8 128 Mozambique 55.0 0.0
98 Burkina Faso 58.9 -1.0 129 Nigeria 54.3 -0.8
99 Fiji 58.7 +1.5 130 Suriname 54.2 +2.2
100 Indonesia 58.5 +1.6 131 Bangladesh 54.1 +1.5
101 Bosnia and Herzegovina 58.4 +1.1 132 Papua New Guinea 53.9 +0.3
102 Nicaragua 58.4 +1.8 133 Guinea 53.5 +2.3
103 Morocco 58.3 -1.3 134 Mauritania 53.2 +0.9
104 Tonga 58.2 +2.2 135 Egypt 52.9 -1.9
105 Gabon 57.8 0.0 136 Cameroon 52.6 +0.3
106 Tanzania 57.8 -0.1 137 China 52.5 +0.6
107 Côte d'Ivoire 57.7 +3.6 138 Liberia 52.4 +3.1
108 Cambodia 57.4 -1.1 139 Tajikistan 52.0 -1.4
109 Tunisia 57.3 +0.3 140 Russia 51.9 +0.8
110 Moldova 57.3 +1.8 141 Burundi 51.4 +2.4
111 Kenya 57.1 +1.2 142 Comoros 51.4 +3.9
112 Honduras 57.1 -1.3 143 Guinea-Bissau 51.3 +0.2
113 Benin 57.1 -0.5 144 Laos 51.2 +1.1
114 Brazil 56.9 -0.8 145 Maldives 51.0 +2.0
115 Belize 56.7 -0.6 146 Algeria 50.8 +1.2
116 Bhutan 56.7 +1.7 147 Vietnam 50.8 -0.2
117 Seychelles 56.2 +1.3 148 Sierra Leone 50.5 +2.2
118 Djibouti 55.9 +2.0 149 Nepal 50.1 -0.3
119 Greece 55.7 +0.3 150 Belarus 50.1 +2.1
120 India 55.7 +0.5 151 Ethiopia 50.0 +0.6
121 Guyana 55.7 +1.9

Repressed

rank country overall change rank country overall change
152 Togo 49.9 +1.1 166 Argentina 44.6 -2.1
153 Micronesia 49.8 -0.3 167 Chad 44.5 -0.7
154 Lesotho 49.5 +1.6 168 Equatorial Guinea 44.4 +2.1
155 Ukraine 49.3 +3.0 169 Republic of Congo 43.7 +0.2
156 Haiti 48.9 +0.8 170 Timor-Leste 43.2 -0.5
157 São Tomé and Príncipe 48.8 +0.8 171 Turkmenistan 42.2 -0.4
158 Bolivia 48.4 +0.5 172 Democratic Republic of Congo 40.6 +1.0
159 Ecuador 48.0 +1.1 173 Iran 40.3 -2.9
160 Angola 47.7 +0.4 174 Eritrea 38.5 +2.2
161 Central African Republic 46.7 -3.7 175 Venezuela 36.3 +0.2
162 Burma 46.5 +7.3 176 Zimbabwe 35.5 +6.9
163 Uzbekistan 46.5 +0.5 177 Cuba 28.7 +0.2
164 Kiribati 46.3 +0.4 178 North Korea 1.0 -0.5
165 Solomon Islands 46.2 +1.2

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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