Hong Kong has bested Singapore and other economies in terms of trade and financial freedom, clinching the top spot for 18 consecutive years.
“Of the 10 economic freedom factors assessed, Hong Kong ranked first in financial and trade freedom, second in investment freedom and property rights, and third in business freedom,” said Hong Kong’s Information Services Department.
According to the 2012 Index of Economic Freedom by the Heritage Foundation, Singapore scored 87.5 out of 100, ranking second in terms of economic freedom across 179 economies around the world. Australia, New Zealand and Switzerland joined Hong Kong and Singapore in the top five spots.
The index evaluates economic freedom, gauging factors such as regulatory efficiency, rule of law, open markets and size of government.
The report stated that general economic freedom in the world had declined over the past year. “Most of that decline is due to a large increase in government spending worldwide,” said Edwin Feulner, President of the Heritage Foundation.
Although Hong Kong remained at the top, Feulner said Singapore “was narrowing the gap”. Hong Kong is moving “modestly in the direction of a more bureaucratic and politicised economy”, with the introduction of a minimum wage in May last year.
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