Hong Kong lags Singapore as freest economy in the world

Free economies are said to enjoy incomes more than double the global average.

Singapore has ousted Hong Kong as the world’s freest economy, landing on the second spot in the Economic Freedom index in 2020, according to a report by research institution The Heritage Foundation.

New Zealand came out third, whilst Australia and Switzerland ended in the fourth, and fifth spot respectively.

The report said that citizens of free countries enjoy incomes that are more than double the global average and more than five times higher than in repressed economies.

People in economically free societies are also said to have a longer life span, have higher quality social goods such as education, and are better equipped to have the resources to practice an environmentally conscious lifestyle.

The report noted that greater economic freedom also correlates with more effective democratic governance and stronger rule of law.

Further, countries with the most economic freedom are said to enjoy positive economic growth.

Expanded economic freedom has contributed to a doubling of world GDP in the years since the Index debuted in 1995.