WSJ: Hong Kong has retained the status of the freest economies in the world

WSJ: Hong Kong has retained the status of the freest economies in the world


Russia in the ranking of 153rd place, its index of economic freedom, compared with the previous year fell by 1.5 points from American studies at the Heritage Foundation.

MOSCOW, 1 Feb. Hong Kong again topped the index of economic freedom, while Russia is only at the 153-th row out of 178, according to the study of the American Heritage Foundation jointly with The Wall Street Journal.

According to the report, the index of economic freedom in Russia in 2016 compared with the previous year fell by 1.5 points to level 50,6 points. Thus, Russia has worsened its position in the ranking on 10 lines in comparison with the year 2015. Thus the value of tax freedom in the country fell by 3.9 points to 82.2 points, the index of freedom from corruption dropped 1 point to 27 points, and the index of freedom of labor market lost 1.3 points, dropping to 57.6 points. Among 43 European countries, Russia took the 42nd place in the ranking.

As reasons for the downgrade of Russia the Heritage Foundation notes the vague promise of a sustainable long-term economic diversification and growth. Pervasive corruption hampers private sector development of the economy and undermines trust in government, according to the authors.

Topped the rating for 2016 three countries in the Asia-Pacific region — Hong Kong (88.6 points), Singapore (87.8 points) and New Zealand (81.6 points). Fourth in the rankings was Switzerland (81 points), fifth — Australia (80.3 points). The US took tenth position with a rating of 75.4 points, Germany — 17th place with 74.4 points, China — 144 with a rating of 51.2 points. Last — 178th — ranked North Korea with an index of 2.3 points.

Country who as a rating of less than 50 points, are considered “absolutely free”, from 50 to 60 points — “mostly unfree”, 60-70 points is “relatively free,” 70 to 80 “mostly free,” and over 80 is “free”.

Published annually the rating of the Heritage Foundation assesses the economic freedom in various countries on ten indicators, including the freedom of business, trade, the situation with fiscal and monetary policy, investment freedom, labor market, and the level of corruption.