Luxembourg ranked among the top 5 economically free countries
Shubham Dhage, Unsplash
The 2024 Index of Economic Freedom, prepared by analysts to assess global economic conditions, covers 184 countries and reflects the state of the economy from 1 July 2022 to 30 June 2023. The index scores countries on key indicators, including fiscal stability, transparency, openness and the effectiveness of public institutions, demonstrating the extent to which countries' policies favour or hinder economic development and prosperity.
According to the index, the global economy is becoming less and less free, with the average score falling to 58.6, the lowest since 2001. Rising deficits and government debts are negatively affecting the productivity of many countries, slowing their economic growth. The study shows that economically free countries, such as Singapore and Switzerland, provide a higher standard of living and sustainable development through lower taxes, simplified regulatory environments and anti-corruption efforts.
The top five countries in the rankings:
- Singapore - 83.5 points
- Switzerland - 83 points
- Ireland - 82.6 points
- Taiwan - 80 points
- Luxembourg - 79.2 points
The index divides countries into categories: "free", "mostly free", "moderately free", "mostly unfree" and "repressive". In 2024, only four countries are classified as "free" (scores 80+), 22 as "mostly free" (scores 70-79.9), and the US, which has lost ground, is in 25th place with a score of 70.1, attributed to rising fiscal costs and debt.
This ranking helps countries recognise the importance of economic freedom in improving overall living standards, health, education and innovation.
