2012 Index of Economic Freedom

Country Rankings

overall score89.9
+0.2
world rank1

#1 Hong Kong

Read More About Hong KongHong Kong’s economic freedom score is 89.9, making its economy the freest in the 2012 Index. Its overall score is 0.2 point higher than last year, with improvements in freedom from corruption and the control of government spending partially offset by a small decline in monetary freedom. Hong Kong is ranked 1st out of 41 countries in the Asia–Pacific region.

Rule of Law

Property Rights90.0

Freedom From Corruption84.0

Limited Government

Government Spending91.0

Fiscal Freedom93.1

Regulatory Efficiency

Business Freedom98.9

Labor Freedom86.5

Monetary Freedom85.8

Open Markets

Trade Freedom90.0

Investment Freedom90.0

Financial Freedom90.0

overall score87.5
+0.3
world rank2

#2 Singapore

Read More About SingaporeSingapore’s economic freedom score is 87.5, making its economy the 2nd freest in the 2012 Index. Its score is slightly higher than last year, reflecting gains in freedom from corruption and financial freedom that offset losses in labor and monetary freedoms. Singapore is ranked 2nd out of 41 countries in the Asia–Pacific region, and its overall score remains significantly higher than the world average.

Rule of Law

Property Rights90.0

Freedom From Corruption93.0

Limited Government

Government Spending91.3

Fiscal Freedom91.3

Regulatory Efficiency

Business Freedom97.2

Labor Freedom92.1

Monetary Freedom84.8

Open Markets

Trade Freedom90.0

Investment Freedom75.0

Financial Freedom70.0

overall score83.1
+0.6
world rank3

#3 Australia

Read More About AustraliaAustralia’s economic freedom score is 83.1, making its economy the 3rd freest in the 2012 Index. Its overall score is 0.6 point higher than last year, reflecting better scores in trade freedom, government spending, and fiscal freedom. 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 Corruption87.0

Limited Government

Government Spending67.1

Fiscal Freedom63.4

Regulatory Efficiency

Business Freedom91.9

Labor Freedom90.6

Monetary Freedom84.5

Open Markets

Trade Freedom86.2

Investment Freedom80.0

Financial Freedom90.0

overall score82.1
-0.2
world rank4

#4 New Zealand

Read More About New ZealandNew Zealand’s economic freedom score is 82.1, making its economy the 4th freest in the 2012 Index. Its score is 0.2 point worse than last year, reflecting modest declines in investment freedom and the control of government spending that offset an improvement in fiscal freedom. New Zealand is ranked 4th out of 41 countries in the Asia–Pacific region, and its score is far above the world and regional averages.

Rule of Law

Property Rights95.0

Freedom From Corruption93.0

Limited Government

Government Spending45.0

Fiscal Freedom71.6

Regulatory Efficiency

Business Freedom99.9

Labor Freedom89.9

Monetary Freedom85.2

Open Markets

Trade Freedom86.8

Investment Freedom75.0

Financial Freedom80.0

overall score81.1
-0.8
world rank5

#5 Switzerland

Read More About SwitzerlandSwitzerland’s economic freedom score is 81.1, making its economy the 5th freest in the 2012 Index. Its score has dropped by 0.8 point since last year, with declines in freedom from corruption, business freedom, and the score for government spending. Switzerland is ranked 1st out of 43 countries in the Europe region, and its overall score is much higher than the world average.

Rule of Law

Property Rights90.0

Freedom From Corruption87.0

Limited Government

Government Spending65.8

Fiscal Freedom67.9

Regulatory Efficiency

Business Freedom77.9

Labor Freedom87.9

Monetary Freedom84.4

Open Markets

Trade Freedom90.0

Investment Freedom80.0

Financial Freedom80.0

overall score79.9
-0.9
world rank6

#6 Canada

Read More About CanadaCanada’s economic freedom score is 79.9, making its economy the 6th freest in the 2012 Index. Its overall score is 0.9 point lower than last year, reflecting worsening scores for government size and monetary freedom. Canada continues to be the freest economy in the North America region, though it has dropped just below the cutoff for characterization as a “free” economy.

Rule of Law

Property Rights90.0

Freedom From Corruption89.0

Limited Government

Government Spending41.7

Fiscal Freedom79.2

Regulatory Efficiency

Business Freedom96.6

Labor Freedom81.8

Monetary Freedom77.3

Open Markets

Trade Freedom87.9

Investment Freedom75.0

Financial Freedom80.0

overall score78.3
+0.9
world rank7

#7 Chile

Read More About ChileChile’s economic freedom score is 78.3, making its economy the 7th freest in the 2012 Index. Its overall score is 0.9 point better than last year due to improved scores in property rights, freedom from corruption, and monetary freedom. 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 Spending82.1

Fiscal Freedom77.4

Regulatory Efficiency

Business Freedom68.6

Labor Freedom75.1

Monetary Freedom85.6

Open Markets

Trade Freedom82.0

Investment Freedom80.0

Financial Freedom70.0

overall score77.0
+0.8
world rank8

#8 Mauritius

Read More About MauritiusMauritius’s economic freedom score is 77.0, making its economy the 8th freest in the 2012 Index. Its overall score is 0.8 point higher than last year, with improvements in property rights, monetary freedom, and the management of government spending. Mauritius is ranked 1st out of 46 countries in the Sub-Saharan African region, and its overall score is well above the world average.

Rule of Law

Property Rights65.0

Freedom From Corruption54.0

Limited Government

Government Spending83.4

Fiscal Freedom91.9

Regulatory Efficiency

Business Freedom78.7

Labor Freedom70.4

Monetary Freedom78.3

Open Markets

Trade Freedom87.9

Investment Freedom90.0

Financial Freedom70.0

overall score76.9
-1.8
world rank9

#9 Ireland

Read More About IrelandIreland’s economic freedom score is 76.9, making its economy the 9th freest in the 2012 Index. Its score has decreased by 1.8 points from last year, reflecting poorer management of government spending and reduced monetary freedom. The Irish economy fell to 2nd place in the Europe region behind Switzerland. Ireland recorded one of the 20 largest score declines in the 2012 Index.

Rule of Law

Property Rights90.0

Freedom From Corruption80.0

Limited Government

Government Spending30.4

Fiscal Freedom73.9

Regulatory Efficiency

Business Freedom92.8

Labor Freedom78.4

Monetary Freedom76.7

Open Markets

Trade Freedom87.1

Investment Freedom90.0

Financial Freedom70.0

overall score76.3
-1.5
world rank10

#10 United States

Read More About United StatesThe United States’ economic freedom score of 76.3 drops it to 10th place in the 2012 Index. Its score is 1.5 points lower than last year, reflecting deteriorating scores for government spending, freedom from corruption, and investment freedom. The U.S. is ranked 2nd out of three countries in the North America region, and its overall score remains well above the world and regional averages.

Rule of Law

Property Rights85.0

Freedom From Corruption71.0

Limited Government

Government Spending46.7

Fiscal Freedom69.8

Regulatory Efficiency

Business Freedom91.1

Labor Freedom95.8

Monetary Freedom77.2

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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world rank country overall score change from previous world rank country overall score change from previous
1 Hong Kong 89.9 +0.2 4 New Zealand 82.1 -0.2
2 Singapore 87.5 +0.3 5 Switzerland 81.1 -0.8
3 Australia 83.1 +0.6

Mostly Free

world rank country overall score change from previous world rank country overall score change from previous
6 Canada 79.9 -0.9 18 Taiwan 71.9 +1.1
7 Chile 78.3 +0.9 19 Macau 71.8 -1.3
8 Mauritius 77.0 +0.8 20 Cyprus 71.8 -1.5
9 Ireland 76.9 -1.8 21 Sweden 71.7 -0.2
10 United States 76.3 -1.5 22 Japan 71.6 -1.2
11 Denmark 76.2 -2.4 23 Lithuania 71.5 +0.2
12 Bahrain 75.2 -2.5 24 Saint Lucia 71.3 +0.5
13 Luxembourg 74.5 -1.7 25 Qatar 71.3 +0.8
14 United Kingdom 74.1 -0.4 26 Germany 71.0 -0.8
15 The Netherlands 73.3 -1.4 27 Iceland 70.9 +2.7
16 Estonia 73.2 -2.0 28 Austria 70.3 -1.6
17 Finland 72.3 -1.7

Moderately Free

world rank country overall score change from previous world rank country overall score change from previous
29 Uruguay 69.9 -0.1 60 Thailand 64.9 +0.2
30 Czech Republic 69.9 -0.5 61 Bulgaria 64.7 -0.2
31 South Korea 69.9 +0.1 62 Romania 64.4 -0.3
32 Jordan 69.9 +1.0 63 Trinidad and Tobago 64.4 -2.1
33 Botswana 69.6 +0.8 64 Poland 64.2 +0.1
34 Georgia 69.4 -1.0 65 Kazakhstan 63.6 +1.5
35 United Arab Emirates 69.3 +1.5 66 Cape Verde 63.5 -1.1
36 Spain 69.1 -1.1 67 France 63.2 -1.4
37 Barbados 69.0 +0.5 68 Portugal 63.0 -1.0
38 Belgium 69.0 -1.2 69 Slovenia 62.9 -1.7
39 Armenia 68.8 -0.9 70 South Africa 62.7 0.0
40 Norway 68.8 -1.5 71 Kuwait 62.5 -2.4
41 El Salvador 68.7 -0.1 72 Montenegro 62.5 0.0
42 Peru 68.7 +0.1 73 Turkey 62.5 -1.7
43 Macedonia 68.5 +2.5 74 Saudi Arabia 62.5 -3.7
44 Costa Rica 68.0 +0.7 75 Madagascar 62.4 +1.2
45 Colombia 68.0 0.0 76 Namibia 61.9 -0.8
46 The Bahamas 68.0 0.0 77 Belize 61.9 -1.9
47 Oman 67.9 -1.9 78 Uganda 61.9 +0.2
48 Israel 67.8 -0.7 79 Paraguay 61.8 -0.5
49 Hungary 67.1 +0.5 80 Dominica 61.6 -1.7
50 Malta 67.0 +1.3 81 Mongolia 61.5 +2.0
51 Slovakia 67.0 -2.5 82 Guatemala 60.9 -1.0
52 Saint Vincent and the Grenadines 66.5 -0.4 83 Croatia 60.9 -0.2
53 Malaysia 66.4 +0.1 84 Ghana 60.7 +1.3
54 Mexico 65.3 -2.5 85 Burkina Faso 60.6 0.0
55 Panama 65.2 +0.3 86 Samoa 60.5 -0.1
56 Latvia 65.2 -0.6 87 Morocco 60.2 +0.6
57 Albania 65.1 +1.1 88 Kyrgyz Republic 60.2 -0.9
58 Jamaica 65.1 -0.6 89 Dominican Republic 60.2 +0.2
59 Rwanda 64.9 +2.2 90 Lebanon 60.1 0.0

Mostly Unfree

world rank country overall score change from previous world rank country overall score change from previous
91 Azerbaijan 58.9 -0.8 121 Yemen 55.3 +1.1
92 Italy 58.8 -1.5 122 Pakistan 54.7 -0.4
93 Honduras 58.8 +0.2 123 India 54.6 0.0
94 The Gambia 58.8 +1.4 124 Moldova 54.4 -1.3
95 Tunisia 58.6 +0.1 125 Niger 54.3 0.0
96 Zambia 58.3 -1.4 126 Côte d'Ivoire 54.3 -1.1
97 Sri Lanka 58.3 +1.2 127 Djibouti 53.9 -0.6
98 Serbia 58.0 0.0 128 Papua New Guinea 53.8 +1.2
99 Brazil 57.9 +1.6 129 Tajikistan 53.4 -0.1
100 Egypt 57.9 -1.2 130 Bangladesh 53.2 +0.2
101 Nicaragua 57.9 -0.9 131 Mauritania 53.0 +0.9
102 Cambodia 57.6 -0.3 132 Seychelles 53.0 +1.8
103 Kenya 57.5 +0.1 133 Suriname 52.6 -0.5
104 Bosnia and Herzegovina 57.3 -0.2 134 Ethiopia 52.0 +1.5
105 Fiji 57.3 -3.1 135 Cameroon 51.8 0.0
106 Swaziland 57.2 -1.9 136 Vietnam 51.3 -0.3
107 The Philippines 57.1 +0.9 137 Guyana 51.3 +1.9
108 Mozambique 57.1 +0.3 138 China 51.2 -0.8
109 Tonga 57.0 +1.2 139 Syria 51.2 -0.1
110 Tanzania 57.0 0.0 140 Algeria 51.0 -1.4
111 Bhutan 56.6 -1.0 141 Guinea 50.8 -0.9
112 Vanuatu 56.6 -0.1 142 Haiti 50.7 -1.4
113 Gabon 56.4 -0.3 143 Micronesia 50.7 +0.4
114 Malawi 56.4 +0.6 144 Russia 50.5 0.0
115 Indonesia 56.4 +0.4 145 Central African Republic 50.3 +1.0
116 Nigeria 56.3 -0.4 146 Bolivia 50.2 +0.2
117 Mali 55.8 -0.5 147 Nepal 50.2 +0.1
118 Benin 55.7 -0.3 148 São Tomé and Príncipe 50.2 +0.7
119 Greece 55.4 -4.9 149 Guinea-Bissau 50.1 +3.6
120 Senegal 55.4 -0.3 150 Laos 50.0 -1.3

Repressed

world rank country overall score change from previous world rank country overall score change from previous
151 Maldives 49.2 +0.9 166 Chad 44.8 -0.5
152 Sierra Leone 49.1 -0.5 167 Republic of Congo 43.8 +0.2
153 Belarus 49.0 +1.1 168 Turkmenistan 43.8 +0.2
154 Liberia 48.6 +2.1 169 Timor-Leste 43.3 +0.5
155 Togo 48.3 -0.8 170 Equatorial Guinea 42.8 -4.7
156 Ecuador 48.3 +1.2 171 Iran 42.3 +0.2
157 Burundi 48.1 -1.5 172 Democratic Republic of Congo 41.1 +0.4
158 Argentina 48.0 -3.7 173 Burma 38.7 +0.9
159 Kiribati 46.9 +2.1 174 Venezuela 38.1 +0.5
160 Angola 46.7 +0.5 175 Eritrea 36.2 -0.5
161 Lesotho 46.6 -0.9 176 Libya 35.9 -2.7
162 Solomon Islands 46.2 +0.3 177 Cuba 28.3 +0.6
163 Ukraine 46.1 +0.3 178 Zimbabwe 26.3 +4.2
164 Uzbekistan 45.8 0.0 179 North Korea 1.0 0.0
165 Comoros 45.7 +1.9

Not Ranked

world rank country overall score change from previous world rank country overall score change from previous
N/A Afghanistan N/A N/A N/A Somalia N/A N/A
N/A Iraq N/A N/A N/A Sudan N/A N/A
N/A Liechtenstein N/A N/A

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