Top 10 Countries by Economic Freedom in 2025: The 2025 Index of Economic Freedom highlights the fragility of the global economy, as it remains “mostly unfree” as a whole, even though the global average economic freedom score has increased by 1.1 points to 59.7 from last year’s 58.6. Only three countries (down from four in the previous year) have earned a designation of “economically free” among the 176 countries ranked in the 2025 Index. Singapore, at #1, continues to be the freest economy in the world, demonstrating a consistently high level of economic resilience and prosperity, with Switzerland at #2 and Ireland at #3, following next. Taiwan has retained its #4 ranking, which is the highest it has ever attained in the Index of Economic Freedom. Meanwhile, the world's largest economy, the United States, at #26 and score plummeting to 70.2, recorded the lowest levels in the history of the Index. On the flip side, about 50% of the Index, i.e., 89 economies, are regarded as "mostly unfree", with about 29 countries, including Pakistan (#150) and China (#151), classified as "economically repressed". Top 10 countries ranked by economic freedom in 2025 World Rank Country Name 2025 Score Economic Freedom Category 1 Singapore 84.1 Free 2 Switzerland 83.7 Free 3 Ireland 83.1 Free 4 Taiwan 79.7 Mostly Free 5 Luxembourg 79.5 Mostly Free 6 Australia 79.3 Mostly Free 7 Denmark 79.1 Mostly Free 8 Estonia 78.9 Mostly Free 9 Norway 78.3 Mostly Free 10 Netherlands 78.2 Mostly Free Source: heritage.org - 2025 Index of Economic Freedom India's global standing explained: India ranks at #128 (and 26th regionally) with a score of 53.0 in 2025. It still falls under the "mostly unfree" economic freedom. India is struggling with fiscal health, scoring a very low 6.2, along with investment freedom and financial freedom, both scoring 40 and government integrity at 37.6. However, on the positive side, it showcases relative strength in areas like government spending (74.2), business freedom (72.3), and tax burden (71.3), and mid-range scores in areas like property rights (51.1), judicial effectiveness (53.2), and labour freedom (59.0). 2025 Index of Economic Freedom: Regional Rankings Stay updated with the latest – Click here to read more Top 10 exclusive reports!
