Taiwan ranks 6th in terms of economic freedom and is rated “Free” for the first time in the Heritage Organization’s Global Economic Freedom Index.
In the latest report by the conservative U.S. think tank, the 2022 Economic Freedom Index, Taiwan ranked sixth in terms of economic freedom out of 184 economies with an overall score of 80.1, up 1.5 points from last year. Of the 39 countries in the Asia-Pacific region, Taiwan is ranked in third place.
The report indicates that Taiwan is one of the few countries in the world with continuous economic growth over the past five years. The team asserts that the country’s economic freedom has also increased during this period due to high scores across all categories and is driven by improvements in judicial efficiency and labor freedom.
Taiwan scored more than 80 points in seven of the 12 categories, and surpassed 90 points in judicial efficiency (94.2) and government spending (90.7). It has a relatively lower score on labor freedom (68.7) and financial freedom (60).
For the first time, Taiwan has been classified as “Free” thanks to an overall 3.6-point increase in economic freedom since 2017. The report said that improvements in Taiwan’s business freedom and financial freedom scores will boost Taiwan’s ranking even higher in the future. .
Taiwan is one of only seven countries rated as “Free”, with Singapore at the top of the table, followed by Switzerland, Ireland, New Zealand, Luxembourg, Taiwan and Estonia. Other categories are “Free most,””moderately free,” “Hardly free,” and “Repressed.” “North Korea is at the bottom of the table with a score of 3.0.
On the other hand, China ranked 158th in terms of economic freedom with a score of 48, down 10.4 points from the previous year. 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 declining scores in judicial performance and financial health. The report classed China as “Repressed” on the grounds that the lack of freedom of investment and financial freedom were “serious obstacles to productivity growth and development.”