Estonia is ranked seventh in this year’s Heritage Foundation’s Index of Economic Freedom and fourth in Europe.
Estonia’s economic freedom score is 80.0, making its economy the seventh freest in the 2022 index.
Estonia is ranked fourth out of 45 countries in the Europe region and its overall score is above regional and global averages.
“Over the past five years, Estonia’s economic growth slowed from 2017 to 2019, contracted in 2020 and rebounded in 2021. Estonia’s enviable record of dynamic economic freedom has been rewarded this year,” according to the index.
“Helped by strong increases in scores for freedom to do business and rule of law, Estonia has seen an overall gain of 0.9 points in economic freedom since 2017 and, for the first time in its scoring history of the index, crossed the threshold of the ‘Mostly Free’ in the first category ‘Free’.
Estonia ranks higher than neighbors including Finland and Sweden
“The only glaring weakness in an otherwise admirable performance is in the public spending score,” the index added.
The index also highlights that as of December 1, 2021, 1,803 deaths have been attributed to the coronavirus pandemic in Estonia – and that “the government’s response to the crisis ranked 133rd among the countries included in this index in terms of strictly”.
The freest economy in the world, according to the index, is in Singapore, followed by Switzerland, Ireland and Luxembourg. New Zealand ranks fifth and Taiwan sixth; Finland is ranked ninth and Denmark finishes the top 10.
Sweden is ranked 11th, Lithuania 17th and Latvia 18th in the 2022 index; Russia is 113th.
The index is calculated on the basis of 12 freedoms – from property rights to financial freedom – in 184 countries. It is compiled by the Heritage Foundation, a conservative think tank based in Washington, DC. For two decades, the index has measured the impact of freedom and free markets around the world.