Top 10 Countries by Economic Freedom in 2025: Despite the significant improvement in the global economy freedom of 1.1 points to 59.7 compared to the 58.6 in the previous year, the 2025 Index of Economic Freedom has shown that the global economy is fragile because it is most likely to be mostly unfree.
The number of countries rated as economically free (out of 176 countries ranked in the 2025 Index) has dropped to only three (out of four the year before).
Singapore is ranked the first position, as the freest economy in the world, showing a high economic resilience and prosperity level, with Switzerland and Ireland in second and third position respectively, as the next countries.
Taiwan has still held position number 4, the highest it has ever had in the Index of Economic Freedom.
Top 10 countries ranked by economic freedom in 2025
| World Rank | Country Name | 2025 Score | Economic Freedom Category |
| 1 | Singapore | 84.1 | Free |
| 2 | Switzerland | 83.7 | Free |
| 3 | Ireland | 83.1 | Free |
| 4 | Taiwan | 79.7 | Mostly Free |
| 5 | Luxembourg | 79.5 | Mostly Free |
| 6 | Australia | 79.3 | Mostly Free |
| 7 | Denmark | 79.1 | Mostly Free |
| 8 | Estonia | 78.9 | Mostly Free |
| 9 | Norway | 78.3 | Mostly Free |
| 10 | Netherlands | 78.2 | Mostly Free |
Source: heritage.org – 2025 Index of Economic Freedom
In the meantime, the largest economy in the world, the United States, with the rank of 26 and the score of 70.2, obtained the lowest values in the history of the Index.
Conversely, approximately half of the Index, i.e. 89 economies, are considered to be mostly unfree, and approximately 29 countries, such as Pakistan (150) and China (151), are economically repressed.
The explanation of the global standing of India:
The country India occupies the 128th (and 26 th regionally) place in the 2025 rank list of 53.0. It remains under the economic freedom that is mostly unfree.
India is facing fiscal health with a very low score of 6.2, and investment freedom and financial freedom with scores of 40 and 37.6 respectively, and government integrity.
But in positive terms, it demonstrates a relative strength in such aspects as government spending (74.2), business freedom (72.3), and tax burden (71.3) and mid-range scores in such aspects as property rights (51.1), judicial effectiveness (53.2), and labour freedom (59.0).
2025 Index of Economic Freedom: Regional Rankings
Human Freedom Index and its Object
The Human Freedom Index is an annual report assessing the status of the human freedom of 165 countries and territories worldwide, representing 98.8 percent of the global human population as of the 2023 HFI report. The HFI is widely encompassing in the sense that it captures the aspects of both personal and economic liberty and then combines the two into one figure known as simply human freedom. It is co-published by the Fraser Institute, the Liberales Institut at the Friedrich Naumann Foundation freedom and the Cato Institute as the Human Freedom Index. The nations that have the biggest scores on the Human Freedom Index are commonly regarded to be one of (the freest countries in the world).
Human Freedom Index 2023 report is the most detailed empirical study of freedom that has been developed so far. It is a comparison and a combination of 86 different indicators that measure the degree of freedom in 165 countries and territories until 2021, the latest year when one has enough information on it. The 86 indicators under analysis fall under one of 12 meta-categories.
Economic Freedom Compared to Personal Freedom
The personal freedom and economic freedom consist of the two sets of different yet closely related indicators. Such indicators as the fairness of the laws, personal safety, freedom of movement and assembly, freedom of religion, freedom to run their political office, freedom of the press, freedom of speech and expression, and freedom to develop same-sex relationships or get a divorce are considered to be indicators of personal freedom.
Comparatively, economic freedom monitors the following pointers as the magnitude of the government and the extent of overbearing it carries out, tax and interest rates, the fairness of the courts and the integrity of the law system, the ability to engage in financial markets and/or trade with the rest of the world, minimum wages, the cost of establishing a business, the existence or lack of compulsory military service (obligatory government service), and overall freedom to make a fortune without government or economic agency involvement.
For more updates follow: Latest News on NEWZZY
