Singapore is now the world’s freest economy as Nigeria ranks number 81

According to a survey produced by the Canadian think tank Fraser Institute, Singapore has dethroned Hong Kong as the world’s freest economy. For the first time since the Economic Freedom of the World Index began in 1970, Hong Kong has dropped from first to second place – and its score is poised to fall even more.

Some of the criteria used to calculate the economic freedom index include ease of international trade, freedom to access and participate in markets, and company laws, among others.

The report’s findings are based on data from 2021, the most recent year with comparable figures available across the 165 countries. It assesses individuals’ economic freedom, or their ability to make economic decisions on their own. “Hong Kong’s recent turn is an example of how economic freedom is intimately connected with civil and political freedom,” stated Fraser Institute senior fellow Matthew Mitchell in a press release.

According to the report, new legislative barriers to entry, rising company costs, and restrictions on hiring foreign labor all lowered Hong Kong’s position.

“These repressions, together with the government’s efforts to control the private sector, inevitably resulted in reduced economic freedom.” As a result, Hong Kong’s prosperity will most likely suffer,” Mitchell predicted.

China (ranked way back at number 111) enforced a national security ordinance in Hong Kong in 2020, which some criticized as limiting the city’s autonomy. Secession and sedition are now punished by up to life in jail under the new legislation.

Singapore rose to first place after finishing second the previous year. “Driven by improvements in the size of its government and regulation components, Singapore’s overall score rose 0.06 points to take the top ranking,” according to the report. Switzerland, New Zealand, and the United States are ranked third, fourth, and fifth, respectively.

“These repressions, together with the government’s efforts to control the private sector, inevitably resulted in reduced economic freedom.” As a result, Hong Kong’s prosperity will most likely suffer,” Mitchell predicted.

Other important mentions include the United Kingdom, which finished ninth, and Japan and Germany, which finished 20th and 23rd, respectively.

For Africa, the highest ranking countries are Mauritius (15), Cape Verde (48), the Gambia (62), Kenya (78), Rwanda (80), Nigeria (81), Uganda (83), South Africa (94), Benin (98), Ghana (98), Tanzania (105), Togo (107), Senegal (111), Namibia (113), Cote D’Voire (119), Mozambique (120) and Tunisia (121), respectively. You can download and read the report here. SOURCE: CNBC by Lee Ying Shan @LEEYINGSHAN