Economic Freedom of the World 2020 Report is out
The Economic Freedom of the World: 2020 Annual Report, the world’s premier measurement of economic freedom is now available. Hong Kong ranks first followed by Singapore, New Zealand, Switzerland, Australia, the United States, Mauritius, Georgia, Canada and Ireland.
The report, published by the Fraser Insitute, measures the economic freedom – the ability of individuals to make their own economic decisions – by analyzing the policies and institutions of 162 countries and territories. The 2020 report is based on data from 2018, the latest year of comparable statistics.
The cornerstones of economic freedom are personal choice, voluntary exchange, freedom to enter markets and compete, and security of the person and privately-owned property. The EFW report measures the degree of economic freedom in five broad areas: 1) Size of Government, 2) Legal System and Property Rights, 3) Sound Money, 4) Freedom to Trade Internationally, and 5) Regulation.
Countries with greater economic freedom have substantially higher per-capita income. The most-economically free countries average at $44,198 compared to $5,754 in countries in the bottom quartile.
Life expectancy rate and infant mortality rate are also related to economic freedom. There is a 14-year gap in terms of life expectancy in the most (80.29) and the least (65.62) economically-free countries. Infant mortality rate is eight times higher in countries in the bottom quartile.
“The economic freedom not only reduces poverty, but also increases prosperity and quality of life,” highlights the report. Download it here.