The Freest Economy In The World - Hong Kong

21 Jan 2014

According to the 2014 Index of Economic Freedom report, Hong Kong is rated as the freest economy in the World, and the country has defended its title for 20^th year in a row!

Following Hong Kong were Singapore and Australia at 2^nd and 3^rd positions respectively in the 2014 Index of Economic Freedom report.

As per the report, the average score of the world was 60.3, and Hong Kong has scored 90.1, which is well above the average. This score is 0.8 points higher than last year. To determine economic freedom of a country, 10 specific categories are evaluated, and Hong Kong surpassed all other economies in the categories of trade freedom, business freedom and financial freedom.

The index has been initiated more than 2 decades ago, and this year’s world average score of 60.3 is the highest average in the past 20 years. For the 2014 Index of Economic Freedom report, 178 economies were ranked globally. Out of these 178, the scores for 59 economies have dived while 114 economies increased.

The Index was launched in 1995 and four broad areas of economic freedom which are evaluated for this Index are: regulatory efficiency, rule of law, open markets and limited government. There are 10 specific categories including freedom from corruption, property rights, fiscal freedom, business freedom, government spending, labor freedom, trade freedom, monetary freedom, financial freedom and investment freedom.

The Index of Economic Freedom report is published annually by the Heritage Foundation and the Wall Street Journal, and is considered as an authority on economic freedom.