The 2024 Economic Freedom of the World Report, published by the Fraser Institute, evaluates 165 countries based on how much freedom individuals have to make their own economic choices. The report reveals that Hong Kong, Singapore, and Switzerland remain the top three nations for economic freedom, according to data from 2022. Despite this, the global trend shows a decline in economic freedom over the last three years, which reverses nearly two decades of consistent improvement.
Global Decline in 2024 Economic Freedom of the World Report:
The report points out a concerning decline in economic freedom worldwide. Over the last three years, the average score has fallen, indicating tighter government control over economic activities. This trend is significant as it affects the ability of individuals to engage freely in trade, investment, and other economic decisions.
Top Countries for Economic Freedom:
- Hong Kong: Ranked 1st despite recent political changes, known for low taxes and open trade policies.
- Singapore: 2nd, recognized for its strong property rights and competitive business environment.
- Switzerland: 3rd, lauded for its financial stability, low corruption, and open economy.
- Other notable countries include New Zealand, the United States, and Denmark.
Key Insights from the Report:
- Disparities in Economic Freedom: The freest countries have GDP per capita 7.6 times greater than those with less economic freedom. Residents also experience longer life expectancies, better access to services, and lower poverty and infant mortality rates.
- Correlation with Positive Outcomes: Higher economic freedom is linked to increased income, reduced corruption, and higher satisfaction with life. The report suggests that economically free nations offer better overall quality of life.
Historical Background and Methodology:
The Fraser Institute’s Economic Freedom index was developed to measure economic freedom in a more market-oriented context than earlier indices. It uses 42 variables including property rights, government size, and trade policies to evaluate economic freedom. The rankings have been widely referenced in policy discussions and academic research.
Economic Freedom Rankings Table (2024):
| Rank | Country | Region |
| 1 | Hong Kong | Asia |
| 2 | Singapore | Asia |
| 3 | Switzerland | Europe |
| 4 | New Zealand | Oceania |
| 5 | United States | North America |
| 6 | Denmark | Europe |
| 7 | Ireland | Europe |
| 8 | Canada | North America |
| 9 | Australia | Oceania |
| 10 | Luxembourg | Europe |
2024 Economic Freedom of the World Report Summary:
- The 2024 Economic Freedom Report measures economic freedom in 165 countries.
- Hong Kong, Singapore, and Switzerland are the top three nations.
- The report highlights a decline in global economic freedom over the last three years.
- Economic freedom is linked to higher incomes, lower corruption, and better life satisfaction.
- Countries with high economic freedom enjoy better social and economic outcomes.
Check 2024 Economic Freedom of the World Report.
Also Read Latest Current Affairs 2024
It is an annual report that measures how much economic freedom people have in 165 countries.
Hong Kong ranks highest, followed by Singapore and Switzerland.
Economic freedom is linked to higher incomes, longer life expectancy, and lower poverty rates.
Global economic freedom has decreased over the past three years, reversing a previous trend of improvement.
The report considers factors like government size, property rights, monetary policy, and trade freedom.
The United States ranks 5th in the 2024 report.
Critics argue that the correlation between economic freedom and growth is not always consistent, especially in economies with robust welfare systems.
