Hong Kong first, U.S. ninth in economic freedom rankings

As for the United States, the index did not have a very positive take on the government’s performance on the economy. The study said the slip in the American ranking — the U.S. ranked eighth a year ago and had a slightly lower overall score this year — had to do with too much government spending and decreases in what the index characterized as trade and business freedom. 

“The government’s recent spending spree has led to fragile business confidence and crushing public debt,” the report found. “Interventionist responses to the economic slowdown have eroded economic freedom and long-term competitiveness.”

The index defines economic free societies as places where “individuals are free to work, produce, consume, and invest in any way they please, with that freedom both protected by the state and unconstrained by the state.”

Overall, this year’s report saw economic freedom on the rise around the world, with scores on freedom rising in almost two-thirds of the countries examined. 

The study’s executive highlights found “those gains are particularly welcome and significant given the fact that the biggest improvements have been achieved in developing and emerging economies where poverty reduction is a top priority.”

Four economies saw their scores rise at least three points: Rwanda, Djibouti, Seychelles and the Solomon Islands.

According to Heritage, six areas — Hong Kong, Singapore, Australia, New Zealand, Switzerland and Canada — have set themselves apart as the world’s “free” economies. Ireland and Denmark also ranked above the United States in this year’s index. 

Venezuela, Cuba and North Korea were among the countries in the rear of this year’s rankings.