Czechia ranks in the world's top 20 'freest' economies: Why does it matter?
The country jumped five places from the previous year's ranking thanks to strides in free trade and limited government intervention.
In the latest Economic Freedom of the World Index by the Canadian Fraser Institute, the Czech Republic has claimed the 17th spot out of 165 countries worldwide. This is a significant improvement from the country's previous ranking of 22nd place last year.
The index, which has been published annually since 1996, utilizes data from 165 countries and provides a comprehensive measure of economic freedom. It assesses various factors, including the size of the state sector, the rule of law, international trade, overall regulation, and the country's currency and inflation environment.
A more open economy
The most notable development in the Czech Republic's ranking is the general increase in economic freedom, marking a reversal of a five-year trend during which the country's economic freedom had been declining.
The Czech Republic demonstrated improvement in four of the five key indicators of the index. The only area showing a slight deterioration was the inflationary environment. This deterioration can be attributed to the global inflationary wave that began in 2021.
For the first time in the history of the index, Hong Kong slipped from its top position, which was now taken by Singapore. Other countries in the top 10 included Switzerland, New Zealand, the U.S., Ireland, Denmark, and Canada.
Conversely, the index also highlighted the 10 countries with the lowest economic freedom scores. These nations include Congo, Algeria, Argentina, Libya, Iran, Yemen, Sudan, Syria, Zimbabwe, and Venezuela. Notably absent from the ranking due to a lack of data are North Korea and Cuba.
The Czech Republic's ascent to the 17th spot in the index signifies a positive turn in the country's economic policies. This improvement reflects a commitment to fostering economic freedom, which is essential for prosperity and growth on a global scale.
Written by: Expats.cz Staff