Canada has ranked 14^th in the list of the most economically-free countries in the world as per the data from 2020 (the most recent available). While the North American country was on the 10^th spot in 2017, it featured outside of the top 10 countries in the annual economic freedom report only once in 1970. Once again, Hong Kong ranked 1^st, followed by Singapore, Switzerland, New Zealand, Denmark, Australia, the United States, Estonia, Mauritius, and Ireland.

The Fraser Institute’s annual ‘Economic Freedom of the World’ report measures economic freedom—the ability of individuals to make their own economic decisions—by analysing the policies and institutions of 165 countries and territories. Indicators include regulation, freedom to trade internationally, size of government, property rights, government spending, and taxation.

Canada has ranked 14th in the list of the most economically-free countries in the world as per the data from 2020 (the most recent available). While the North American country was on the 10th spot in 2017, it featured outside of the top 10 countries in the annual economic freedom report only once in 1970. Once again, Hong Kong ranked 1st in the list.

“Increased regulation and higher taxes, both federally and provincially, have made Canadians less economically free, which means slower economic growth and less investment across the country. While the report takes no position on whether public health measures were merited, there’s no question that government policies during the first year of the pandemic reduced economic freedom,” Fred McMahon, Dr. Michael A Walker research chair in economic freedom at the Fraser Institute, was quoted as saying in a press release by the Fraser Institute.

The report takes into account the impact of the pandemic with 146 countries and territories experiencing a decline in economic freedom after governments worldwide imposed COVID restrictions in 2020.

“Hong Kong remains the most economically-free jurisdiction in the world, but this ranking is based on 2020 data and more recent interference from China threatens to undermine Hong Kong’s rule of law, which helps ensure equal freedom for all,” said McMahon.

The rankings of other major countries include Japan (12th), Germany (24th), Italy (43rd), France (54th), Mexico (65th), India (90th), Russia (94th), Brazil (114th), and China (116th). People living in countries with high levels of economic freedom enjoy greater prosperity, more political and civil liberties, and longer lives, added the release.

For example, countries in the top quartile of economic freedom had an average per capita gross domestic product (GDP) of $48,251 in 2020 compared to $6,542 for bottom quartile countries. Poverty rates are also lower. In the top quartile, 2.02 per cent of the population experienced extreme poverty ($1.90 a day) compared to 31.45 per cent in the lowest quartile. Finally, life expectancy is 80.4 years in the top quartile of countries compared to 66.0 years in the bottom quartile.

Fibre2Fashion News Desk (NB)