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Mapped: The State of Economic Freedom in 2023
Mapped: The State of Economic Freedom in 2023
The concept of economic freedom serves as a vital framework for evaluating the extent to which individuals and businesses have the freedom to make economic decisions. In countries with low economic freedom, governments exert coercion and constraints on liberties, restricting choice for individuals and businesses, which can ultimately hinder prosperity.
The map above uses the annual Index of Economic Freedom from the Heritage Foundation to showcase the level of economic freedom in every country worldwide on a scale of 0-100, looking at factors like property rights, tax burdens, labor freedom, and so on.
The ranking categorizing scores of 80+ as free economies, 70-79.9 as mostly free, 60-69.9 as moderately free, 50-59.9 as mostly unfree, and 0-49.9 as repressed.
Measuring Economic Freedom
This ranking uses four broad categories with three key indicators each, both qualitative and quantitative, to measure economic freedom.
- Rule of law: property rights, judicial effectiveness, government integrity
- Size of government: tax burdens, fiscal health, government spending
- Regulatory efficiency: labor freedom, monetary freedom, business freedom
- Open markets: financial freedom, trade freedom, investment freedom
The 12 indicators are weighted equally and scored from 0-100. The overall score is then determined from the average of the 12 indicators.
Here’s a closer look at every country’s score:
Rank | Country | 2023 Score |
---|---|---|
#1 | 🇸🇬 Singapore | 83.9 |
#2 | 🇨🇠Switzerland | 83.8 |
#3 | 🇮🇪 Ireland | 82.0 |
#4 | 🇹🇼 Taiwan | 80.7 |
#5 | 🇳🇿 New Zealand | 78.9 |
#6 | 🇪🇪 Estonia | 78.6 |
#7 | 🇱🇺 Luxembourg | 78.4 |
#8 | 🇳🇱 Netherlands | 78.0 |
#9 | 🇩🇰 Denmark | 77.6 |
#10 | 🇸🇪 Sweden | 77.5 |
#11 | 🇫🇮 Finland | 77.1 |
#12 | 🇳🇴 Norway | 76.9 |
#13 | 🇦🇺 Australia | 74.8 |
#14 | 🇩🇪 Germany | 73.7 |
#15 | 🇰🇷 South Korea | 73.7 |
#16 | 🇨🇦 Canada | 73.7 |
#17 | 🇱🇻 Latvia | 72.8 |
#18 | 🇨🇾 Cyprus | 72.3 |
#19 | 🇮🇸 Iceland | 72.2 |
#20 | 🇱🇹 Lithuania | 72.2 |
#21 | 🇨🇿 Czechia | 71.9 |
#22 | 🇨🇱 Chile | 71.1 |
#23 | 🇦🇹 Austria | 71.1 |
#24 | 🇦🇪 United Arab Emirates | 70.9 |
#25 | 🇺🇸 United States | 70.6 |
#26 | 🇲🇺 Mauritius | 70.6 |
#27 | 🇺🇾 Uruguay | 70.2 |
#28 | 🇬🇧 United Kingdom | 69.9 |
#29 | 🇧🇧 Barbados | 69.8 |
#30 | 🇵🇹 Portugal | 69.5 |
#31 | 🇯🇵 Japan | 69.3 |
#32 | 🇧🇬 Bulgaria | 69.3 |
#33 | 🇸🇰 Slovakia | 69.0 |
#34 | 🇮🇱 Israel | 68.9 |
#35 | 🇬🇪 Georgia | 68.7 |
#36 | 🇶🇦 Qatar | 68.6 |
#37 | 🇸🇮 Slovenia | 68.5 |
#38 | 🇼🇸 Samoa | 68.3 |
#39 | 🇯🇲 Jamaica | 68.1 |
#40 | 🇵🇱 Poland | 67.7 |
#41 | 🇲🇹 Malta | 67.5 |
#42 | 🇲🇾 Malaysia | 67.3 |
#43 | 🇧🇪 Belgium | 67.1 |
#44 | 🇵🇪 Peru | 66.5 |
#45 | 🇨🇷 Costa Rica | 66.5 |
#46 | ðŸ‡ðŸ‡· Croatia | 66.4 |
#47 | 🇨🇻 Cabo Verde | 65.8 |
#48 | 🇧🇳 Brunei Darussalam | 65.7 |
#49 | 🇦🇱 Albania | 65.3 |
#50 | 🇦🇲 Armenia | 65.1 |
#51 | 🇪🇸 Spain | 65.0 |
#52 | 🇧🇼 Botswana | 64.9 |
#53 | 🇷🇴 Romania | 64.5 |
#54 | ðŸ‡ðŸ‡º Hungary | 64.1 |
#55 | 🇵🇦 Panama | 63.8 |
#56 | 🇲🇰 North Macedonia | 63.7 |
#57 | 🇫🇷 France | 63.6 |
#58 | 🇷🇸 Serbia | 63.5 |
#59 | 🇻🇨 Saint Vincent and the Grenadines | 63.5 |
#60 | 🇮🇩 Indonesia | 63.5 |
#61 | 🇲🇽 Mexico | 63.2 |
#62 | 🇨🇴 Colombia | 63.1 |
#63 | 🇧🇦 Bosnia and Herzegovina | 62.9 |
#64 | 🇬🇹 Guatemala | 62.7 |
#65 | 🇩🇴 Dominican Republic | 62.6 |
#66 | 🇧🇸 The Bahamas | 62.6 |
#67 | 🇫🇲 Micronesia | 62.6 |
#68 | 🇧🇠Bahrain | 62.5 |
#69 | 🇮🇹 Italy | 62.3 |
#70 | 🇻🇺 Vanuatu | 62.1 |
#71 | 🇰🇿 Kazakhstan | 62.1 |
#72 | 🇻🇳 Vietnam | 61.8 |
#73 | 🇲🇳 Mongolia | 61.7 |
#74 | 🇸🇹 São Tomé and PrÃncipe | 61.5 |
#75 | 🇦🇿 Azerbaijan | 61.4 |
#76 | 🇵🇾 Paraguay | 61.0 |
#77 | 🇲🇪 Montenegro | 60.9 |
#78 | 🇽🇰 Kosovo | 60.7 |
#79 | 🇱🇨 Saint Lucia | 60.7 |
#80 | 🇹🇠Thailand | 60.6 |
#81 | 🇨🇮 Côte d'Ivoire | 60.4 |
#82 | 🇹🇴 Tonga | 60.0 |
#83 | 🇹🇿 Tanzania | 60.0 |
#84 | 🇧🇯 Benin | 59.8 |
#85 | 🇧🇿 Belize | 59.8 |
#86 | 🇩🇲 Dominica | 59.7 |
#87 | 🇸🇨 Seychelles | 59.5 |
#88 | 🇹🇹 Trinidad and Tobago | 59.5 |
#89 | 🇵🇠Philippines | 59.3 |
#90 | 🇧🇹 Bhutan | 59.0 |
#91 | 🇲🇬 Madagascar | 58.9 |
#92 | 🇰🇮 Kiribati | 58.8 |
#93 | 🇯🇴 Jordan | 58.8 |
#94 | ðŸ‡ðŸ‡³ Honduras | 58.7 |
#95 | 🇴🇲 Oman | 58.5 |
#96 | 🇲🇩 Moldova | 58.5 |
#97 | 🇲🇦 Morocco | 58.4 |
#98 | 🇸🇦 Saudi Arabia | 58.3 |
#99 | 🇬🇠Ghana | 58.0 |
#100 | 🇫🇯 Fiji | 58.0 |
#101 | 🇬🇲 The Gambia | 57.9 |
#102 | 🇳🇦 Namibia | 57.7 |
#103 | 🇸🇳 Senegal | 57.7 |
#104 | 🇹🇷 Türkiye | 56.9 |
#105 | 🇬🇾 Guyana | 56.9 |
#106 | 🇬🇷 Greece | 56.9 |
#107 | 🇸🇧 Solomon Islands | 56.9 |
#108 | 🇰🇼 Kuwait | 56.7 |
#109 | 🇺🇿 Uzbekistan | 56.5 |
#110 | 🇰🇠Cambodia | 56.5 |
#111 | 🇧🇫 Burkina Faso | 56.2 |
#112 | 🇬🇦 Gabon | 56.1 |
#113 | 🇩🇯 Djibouti | 56.1 |
#114 | 🇸🇻 El Salvador | 56.0 |
#115 | 🇰🇬 Kyrgyzstan | 55.8 |
#116 | 🇿🇦 South Africa | 55.7 |
#117 | 🇲🇷 Mauritania | 55.3 |
#118 | 🇹🇬 Togo | 55.3 |
#119 | 🇪🇨 Ecuador | 55.0 |
#120 | 🇸🇿 Eswatini | 54.9 |
#121 | 🇳🇮 Nicaragua | 54.9 |
#122 | 🇲🇱 Mali | 54.5 |
#123 | 🇧🇩 Bangladesh | 54.4 |
#124 | 🇳🇬 Nigeria | 53.9 |
#125 | 🇷🇺 Russia | 53.8 |
#126 | 🇳🇪 Niger | 53.7 |
#127 | 🇧🇷 Brazil | 53.5 |
#128 | 🇰🇲 Comoros | 53.5 |
#129 | 🇬🇳 Guinea | 53.2 |
#130 | 🇦🇴 Angola | 53.0 |
#131 | 🇮🇳 India | 52.9 |
#132 | 🇹🇳 Tunisia | 52.9 |
#133 | 🇲🇼 Malawi | 52.8 |
#134 | 🇲🇿 Mozambique | 52.5 |
#135 | 🇰🇪 Kenya | 52.5 |
#136 | 🇱🇰 Sri Lanka | 52.2 |
#137 | 🇷🇼 Rwanda | 52.2 |
#138 | 🇹🇩 Chad | 52.0 |
#139 | 🇨🇲 Cameroon | 51.9 |
#140 | 🇵🇬 Papua New Guinea | 51.7 |
#141 | 🇱🇸 Lesotho | 51.6 |
#142 | 🇳🇵 Nepal | 51.4 |
#143 | 🇺🇬 Uganda | 51.4 |
#144 | 🇦🇷 Argentina | 51.0 |
#145 | 🇧🇾 Belarus | 51.0 |
#146 | 🇹🇯 Tajikistan | 50.6 |
#147 | 🇱🇦 Laos | 50.3 |
#148 | 🇸🇱 Sierra Leone | 50.2 |
#149 | ðŸ‡ðŸ‡¹ Haiti | 49.9 |
#150 | 🇱🇷 Liberia | 49.6 |
#151 | 🇪🇬 Egypt | 49.6 |
#152 | 🇵🇰 Pakistan | 49.4 |
#153 | 🇬🇶 Equatorial Guinea | 48.3 |
#154 | 🇨🇳 China | 48.3 |
#155 | 🇪🇹 Ethiopia | 48.3 |
#156 | 🇨🇬 Congo | 48.1 |
#157 | 🇨🇩 Democratic Republic of the Congo | 47.9 |
#158 | 🇿🇲 Zambia | 47.8 |
#159 | 🇹🇱 Timor-Leste | 47.2 |
#160 | 🇲🇻 Maldives | 46.6 |
#161 | 🇹🇲 Turkmenistan | 46.5 |
#162 | 🇲🇲 Myanmar | 46.5 |
#163 | 🇸🇷 Suriname | 46.1 |
#164 | 🇱🇧 Lebanon | 45.6 |
#165 | 🇬🇼 Guinea-Bissau | 44.6 |
#166 | 🇨🇫 Central African Republic | 43.8 |
#167 | 🇧🇴 Bolivia | 43.4 |
#168 | 🇩🇿 Algeria | 43.2 |
#169 | 🇮🇷 Iran | 42.2 |
#170 | 🇧🇮 Burundi | 41.9 |
#171 | 🇪🇷 Eritrea | 39.5 |
#172 | 🇿🇼 Zimbabwe | 39.0 |
#173 | 🇸🇩 Sudan | 32.8 |
#174 | 🇻🇪 Venezuela | 25.8 |
#175 | 🇨🇺 Cuba | 24.3 |
#176 | 🇰🇵 North Korea | 2.9 |
- | 🇮🇶 Iraq | N/A |
- | 🇱🇾 Libya | N/A |
- | 🇱🇮 Liechtenstein | N/A |
- | Afghanistan | N/A |
Only four countries in the world have a score of 80 or above, Ireland, Singapore, Switzerland, and Taiwan, categorizing them as completely free economically.
Let’s now look at things from a more regional perspective.
Europe
From a regional perspective, Europe ranks the strongest in economic freedom.
Despite being a powerhouse within Europe, Germany ranks 10th in the continent, with a score of 73.7. One of the categories Germany scored the weakest in was government spending (28.3/100). Over the last three years, government spending has averaged 49%Â of GDP.
Ireland ranks third globally, scoring particularly high in categories like property rights and judicial effectiveness. The country also has no minimum capital requirement—which is typically a banking regulation and corporate law issue determining how many assets an organization must hold—making it attractive for businesses to set up shop on the Emerald Isle.
Africa
Currently, Africa is the continent with the least economic freedom in the world, however, it is also the region with the highest potential for economic growth. A booming population, and thus, labor force, are promising for future innovation. In fact, it’s anticipated that Africa will see an increase of 2.5 billion people by the end of the century.
The lowest scoring country in Africa is Sudan, a country under further strain thanks to rife civil conflict. Historically, economic development has been constrained by rampant corruption and a lack of institutional capacity.
Conversely, Botswana registered the highest score on continental Africa (64.9), ranking higher than countries like France and Italy.
The Americas
In the Americas, the United States ranks 3rd regionally—25th overall—with a score of 70.6. The report attributes the categorization of U.S. as only “mostly free” to issues like inflation, increasing government debt, and unchecked deficit spending. Public debt currently sits at a figure equivalent to more than 128% of GDP.
In South America, Chile comes out on top, ranking above many other economic powerhouses like the U.S., the UK, and Japan. However, the 2021 election of a new Constitutional Assembly could risk the current economic state, as it favors a much more socialist approach to the economy.
East Asia and Oceania
China’s score is among the lowest in East Asia & Oceania, ranking 154th in the world categorizing it as a repressed economy. The ruling Chinese Communist Party routinely exercises direct control over economic activity. China’s protectionist stance towards foreign investment and a plethora of trade tariffs imposed by other nations also factor in here.
In India, where public debt is equivalent to about 84% of GDP, fiscal health is the worst-scoring category. Additionally, much of the economy remains quite informal; a large share of people work in jobs without tax slips, recorded income, or formal contracts protecting them, which challenges labor freedoms.
The Middle East and Central Asia
It may come as no surprise that the United Arab Emirates has the highest score in the Middle East. The UAE has implemented various measures and initiatives, such as tax exemptions, duty-free zones, streamlined business registration processes, and flexible regulatory frameworks to encourage entrepreneurship and foreign direct investment. As well, the top individual and corporate tax rates in the country are 0%.
Türkiye’s lowest scoring category relates to judiciary effectiveness and the rule of law. President Recep Tayyip ErdoÄŸan, who has already been in power for two decades, recently won the country’s election, again cementing his authority over Turkish politics. This makes it unlikely that Türkiye’s economic freedom score will recover in the short to medium term.
Where Does This Data Come From?
Source: The Index of Economic Freedom from the Heritage Foundation
Data notes: A number of countries were not ranked due to unavailable data or other factors, like ongoing war, that made it difficult to properly assess the economy. These countries include: Ukraine, Afghanistan, Iraq, Libya, Liechtenstein, Somalia, Syria, and Yemen.
Maps
Mapped: The 10 U.S. States With the Lowest Real GDP Growth
In this graphic, we show where real GDP lagged the most across America in 2023 as high interest rates weighed on state economies.
The Top 10 U.S. States, by Lowest Real GDP Growth
This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.
While the U.S. economy defied expectations in 2023, posting 2.5% in real GDP growth, several states lagged behind.
Last year, oil-producing states led the pack in terms of real GDP growth across America, while the lowest growth was seen in states that were more sensitive to the impact of high interest rates, particularly due to slowdowns in the manufacturing and finance sectors.
This graphic shows the 10 states with the least robust real GDP growth in 2023, based on data from the Bureau of Economic Analysis.
Weakest State Economies in 2023
Below, we show the states with the slowest economic activity in inflation-adjusted terms, using chained 2017 dollars:
Rank | State | Real GDP Growth 2023 YoY | Real GDP 2023 |
---|---|---|---|
1 | Delaware | -1.2% | $74B |
2 | Wisconsin | +0.2% | $337B |
3 | New York | +0.7% | $1.8T |
4 | Missississippi | +0.7% | $115B |
5 | Georgia | +0.8% | $661B |
6 | Minnesota | +1.2% | $384B |
7 | New Hampshire | +1.2% | $91B |
8 | Ohio | +1.2% | $698B |
9 | Iowa | +1.3% | $200B |
10 | Illinois | +1.3% | $876B |
U.S. | +2.5% | $22.4T |
Delaware witnessed the slowest growth in the country, with real GDP growth of -1.2% over the year as a sluggish finance and insurance sector dampened the state’s economy.
Like Delaware, the Midwestern state of Wisconsin also experienced declines across the finance and insurance sector, in addition to steep drops in the agriculture and manufacturing industries.
America’s third-biggest economy, New York, grew just 0.7% in 2023, falling far below the U.S. average. High interest rates took a toll on key sectors, with notable slowdowns in the construction and manufacturing sectors. In addition, falling home prices and a weaker job market contributed to slower economic growth.
Meanwhile, Georgia experienced the fifth-lowest real GDP growth rate. In March 2024, Rivian paused plans to build a $5 billion EV factory in Georgia, which was set to be one of the biggest economic development initiatives in the state in history.
These delays are likely to exacerbate setbacks for the state, however, both Kia and Hyundai have made significant investments in the EV industry, which could help boost Georgia’s manufacturing sector looking ahead.
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