The Heritage Foundation has released the 2025 edition of its annual Index of Economic Freedom, covering economic policies and conditions in 184 countries from mid-2023 to mid-2024. The report highlights a global economy that remains "mostly unfree," with an overall economic freedom rating of 59.7 out of 100.
The global economy faces challenges such as poor policy decisions, high inflation due to excessive spending, and ongoing conflicts in Europe and the Middle East. These factors have contributed to fiscal instability, with rising deficits and increasing public debt affecting productivity growth worldwide.
Singapore maintains its position as the world's most economically free country, followed by Switzerland, Ireland, Taiwan, and Luxembourg. Paraguay showed significant improvement in its economic freedom score under President Santiago Peña's administration since August 2023, focusing on legislative reforms to enhance entrepreneurship and private sector growth.
In contrast, the United States saw a decline in its economic freedom rating to 70.2, placing it at 26th globally—the lowest position it has ever held in the Index's history. The report attributes this decline to what it describes as anti-growth policies and increased deficit spending by the Biden administration over recent years.
North Korea, Cuba, Venezuela, Zimbabwe, and Sudan remain among the least economically free nations according to the Index.
Dr. Kevin Roberts, president of The Heritage Foundation, commented on the findings: "It is long past time to put the American people first...the reelection of Donald Trump has placed our country at the dawn of a new era." He emphasized the need for revitalizing America's economic freedom.
Anthony Kim from The Heritage Foundation noted: "There continues to be a clear positive relationship between greater economic freedom and higher economic dynamism...freedom matters more than ever." He also praised Argentina for improving its score through President Javier Milei’s reform agenda.
Since its inception in 1995, the Index evaluates countries based on rule of law, government size, regulatory efficiency, and open markets across twelve categories like property rights and trade freedom. These scores are averaged for an overall assessment of each country's economic freedom.
