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Global Economic Freedom Report of 2026

The Fraser Institute's latest Economic Freedom of the World report, published on October 6, 2026, signals a gradual recovery in global economic freedom following the disruptions caused by the pandemic. However, the report highlights that the current levels remain below those recorded before the pandemic, indicating a setback that has undone a decade of advancements.

An Uneven Path to Recovery

According to the report, the assessment derives from data spanning 165 countries for the year 2024—the most recent year for which comprehensive data is available. Matthew Mitchell, a senior fellow at the Fraser Institute and co-author of the study, emphasized that policymakers worldwide heightened regulations, increased trade barriers, and expanded governmental spending and taxation in reaction to the pandemic. This led to a decline in economic freedoms as governments resorted to money printing to manage expenses.

Economic freedom fundamentally refers to the degree to which individuals can make their own choices regarding purchases, employment, and entrepreneurship. It encapsulates essential aspects like trade openness, tax burdens, regulatory constraints, and the protection of property rights. A robust economic environment fosters prosperity, enabling individuals to flourish.

Global Rankings

In the 2024 rankings, Hong Kong retains the title of the most economically free region, despite a decline in its score in recent years. Following Hong Kong are Switzerland, Singapore, New Zealand, and the United States, occupying the second to fifth positions, respectively. Notable rankings for other countries include the United Kingdom at 10th, Japan at 13th, and Canada at 18th. On the contrary, countries that perform poorly in terms of economic freedom include Venezuela, Zimbabwe, Libya, and Iran, among others.

The report also presents projections based on preliminary data from the United States, indicating a drop in economic freedom anticipated for the upcoming year, particularly during the first year of President Trump’s second term. This highlights ongoing struggles in upholding freedoms that enable economic growth in a global landscape.

The Impact of Economic Freedom on Lives

The findings starkly illustrate how vital economic freedom is to social well-being. In countries classified within the highest quarter for economic freedom, the per capita GDP soared to US$65,596, compared to just US$9,552 in nations positioned in the least economically free quartile. Furthermore, extreme poverty rates were much lower in economically free nations, with only 2% living on less than US$4.10 daily versus 41% in the least free nations.

Moreover, life expectancy offers insight into the benefits of economic independence; individuals in the freest countries have a life expectancy of 81 years, contrasted with just 67 years in markedly less free countries. This underscores the essential correlation between economic freedom and overall well-being, thereby affirming that a landscape where people can choose their paths leads to healthier, more prosperous, and fulfilled lives.

Mitchell concluded by stating, "Where people are free to pursue their own opportunities and make their own economic choices, they lead more prosperous, happier, and healthier lives." This report compels a re-evaluation of governmental roles and the importance of advocating for policies that reinforce economic freedoms worldwide.

The Fraser Institute functions as an independent Canadian public policy research organization dedicated to studying the implications of governmental policies and entrepreneurship on citizens' living standards. To circumvent biases, it abstains from accepting government grants or research contracts. For further insights, please visit www.fraserinstitute.org.