TAIPEI (Taiwan News) – Taiwan ranked sixth in economic freedom and was rated “free” for the first time in the Heritage Foundation’s Global Index of Economic Freedom.
In the conservative US think tank’s latest report titled Index of Economic Freedom 2022, Taiwan ranks 6th in economic freedom out of 184 economies with an overall score of 80.1, an improvement of 1.5 points from Last year. Among the 39 countries in the Asia-Pacific region, Taiwan ranks third.
The report points out that Taiwan is one of the few countries in the world to have experienced continuous economic growth over the past five years. The think tank claimed that the country’s economic freedom also increased during this period due to high scores in all categories and was boosted by improved judicial efficiency and labor freedom.
Taiwan scored over 80 in seven of 12 categories and surpassed 90 in judicial efficiency (94.2) and public spending (90.7). It had relatively lower scores for work freedom (68.7) and financial freedom (60).
For the first time, Taiwan has been categorized as “Free” thanks to an overall gain of 3.6 economic freedom points since 2017. The report suggests that improving Taiwan’s business freedom and financial freedom scores would bolster Taiwan’s ranking again in the future. .
Taiwan is one of seven countries classified as “free”, with Singapore in the lead, followed by Switzerland, Ireland, New Zealand, Luxembourg, Taiwan and Estonia. The other categories are “Mostly Free”, “Moderately Free”, “Mostly Unfree”, and “Repressed”. North Korea is at the bottom of the ranking with a score of 3.0.
China, on the other hand, came in at 158th place in economic freedom with a score of 48, down 10.4 points from a year earlier. The communist country ranks 35th in the Asia-Pacific region.
According to the report, China’s economic freedom peaked in 2020, but it has deteriorated over the past two years due to falling judicial efficiency and fiscal health scores. The report downgraded China to the “repressed” category, citing the lack of investment freedom and financial freedom as “serious impediments to growth and productivity development.”