WASHINGTON—Today, The Heritage Foundation released its 32nd edition of the annual Index of Economic Freedom, a flagship publication that tracks the progress of economic freedom around the globe as a data-driven, practical policy guidebook covering 184 countries. 

One critical, unambiguous lesson of the Index over the past decades is that what really matters is the direction and orientation of policy: that is, the change at the margin. The latest edition of the Index confirms, yet again, that when economic freedom advances, prosperity follows. 

The United States recorded the greatest improvement in the 2026 Index “amongst advanced economies.” America’s score has risen by over 2.5 points from last year, reversing the precipitous decline in economic freedom under the Biden era and marking the most significant improvement since 2001. 

Along with the impressive performance of the United States, Argentina’s economic freedom rating has increased by 3.2 points from last year, making it the best-performing country in the 2026 Index. Conversely, China’s economic freedom score is a mere 48.2, making its economy the 154th freest in the 2026 Index, continuing to be classified as “repressed.” 

There continues to be a clear relationship between improving economic freedom and achieving higher economic dynamism and greater overall well-being. The stark differences between Taiwan and China, Chile and Venezuela, and Israel and Iran are powerfully clear as the 2026 Index documents categorically once again: freedom matters more than ever. Economic freedom is the cornerstone of a healthy society with growing families and vibrant markets.  

Dr. Kevin Roberts, president of The Heritage Foundation and Heritage Action, stated: 

“By reducing government size, focusing on deregulation, and exposing and eliminating fraud, the Trump administration is reversing the sharp decline in economic freedom seen during the Biden era. After years of failed economic policy, the United States is once again creating the conditions for innovation, entrepreneurial opportunity, and long-term competitiveness. That progress is not accidental. It truly reflects the Trump Administration’s pragmatic pro-growth strategy that puts American working families first.”  

Anthony Kim, research fellow and editor of the Index of Economic Freedom at The Heritage Foundation, added: 

“With decisive action and pragmatic policies that have served as a necessary corrective to the failed experiment of ‘Bidenomics’, President Trump has set the initial stage for America’s comeback and path forward for greater economic dynamism. 

“Similarly, Argentina’s economic freedom continues to improve under the leadership of President Javier Milei’s reform agenda. Other notable countries include Oman, the Philippines, Morocco, and Paraguay, which have recorded sizable score improvements over the past two years despite the challenging economic environments. In particular, Paraguay’s President Peña has been unambiguously promoting economic freedom, combating corruption, and building alliances with democratic nations. Indeed, Paraguay has shown itself to be a good ally for the United States in hemispheric relations, becoming one of the most reliable partners of the Trump Administration.”   

Launched in 1995, the Index evaluates countries in four broad policy areas that affect economic freedom: rule of law, government size, regulatory efficiency, and open markets. There are 12 specific categories, including property rights, judicial effectiveness, government integrity, tax burden, government spending, fiscal health, business freedom, labor freedom, monetary freedom, trade freedom, investment freedom, and financial freedom. Scores in these categories are averaged to create an overall economic freedom score.