Singapore has once again claimed the top spot in this year’s Economic Freedom Index, becoming the world’s freest economy, which continues to show resilience and prosperity. Switzerland is in second place, followed by Ireland. Taiwan ranks fourth, marking its highest position ever. Meanwhile, India stands behind at 128, reflecting significant challenges in the domestic economic environment.
In this year’s rankings, there are a few shifts among the top economies. The 2025 Index reviewed the economic policies of 184 countries from July 2023 to June 2024. It found that the global economy, as a whole, remains “mostly unfree”. The average economic freedom score worldwide rose slightly from 58.6 last year to 59.7 this year.
The 2025 Economic Freedom Index shows that countries supporting free markets, the rule of law, private property, and limited government tend to do better in many areas. These nations enjoy stronger economies, better education, healthier environments, more jobs and overall better societies.
Top 10 countries in Economic Freedom Index 2025
1. Singapore
2. Switzerland
3. Ireland
4. Taiwan
5. Luxembourg
6. Australia
7. Denmark
8. Estonia
9. Norway
10. Netherlands
India’s Economic Freedom in 2025
In the Index of Economic Freedom 2025, India is labelled as “Mostly Unfree” in terms of economic freedom, meaning its citizens face significant restrictions in doing business and managing their finances. India scored 53 out of 100, which is only 53% on the scale. This marks the lowest score for the country in the last seven years.
Out of 184 countries ranked, India stands at 128th place. The main areas pulling down its score are weak government integrity, limited labour freedom and poor fiscal health. These challenges continue to affect India’s overall ranking and economic performance.
The report highlights that in countries like India and parts of South America, starting a business can be a long and frustrating process. Entrepreneurs often face repeated trips to government offices and deal with officials who can be overly strict or, at times, corrupt.
US sees decline, Argentina makes gains
The United States, once a leading example of economic freedom, has seen a significant drop. Its score fell to 70.2, one of the lowest in Index history, placing it 26th in the world. The main reason is high government spending, which has increased debt and deficits over the past four years. In contrast, Argentina has made big improvements. Under President Javier Milei, reforms in fiscal and regulatory policies have helped lift the country out of the lowest tier and set its economy on a stronger path.
People in freer countries earn much more than those in less free nations. Countries rated “free,” “mostly free,” or “moderately free” have incomes more than twice the global average and more than three times higher than those living in economically “repressed” countries. This shows a clear link between economic freedom and a higher standard of living.