Commodities

A more business-friendly government, elected in 2021, could improve economic freedom. However, protests by indigenous factions have been violently suppressed. Economic performance is expected to be stronger than the regional average, whilst…

Gibraltar’s cooperation in tax matters has made the territory more transparent. Issues over the state’s sovereignty remain unresolved, which is a source of instability. Strength in financial services and the online gaming sector could support…

Grenada enjoys political stability, although its state finances have deteriorated as a result of the Coronavirus (COVID-19) pandemic. Tourism accounts for a large share of exports and output, which is likely to lead to economic underperformance…

French subsidies help to maintain political stability on Guadeloupe, although the islands are prone to civil unrest against socio-economic conditions. Substantial reliance on tourism resulted in recession in 2020, caused by the negative impact of the…

Political instability has been partly to blame for a deterioration in peacefulness in Guyana, although efforts to tackle corruption are improving. The economy was the best performer globally in 2020, but major oil discoveries also raise the country’s…

The Netherlands maintains considerable clout over the affairs of Curacao, which is leading to growing calls for a full split from the European nation. Given that the economy is highly dependent on tourism and oil refining, it has suffered at the…

The US’s large military presence on Guam makes the territory a target for attacks by nations looking to lower US power in Asia Pacific. Guam is highly reliant on US federal funding, exposing the territory to changes in US military spending. Tourism…

Guinea-Bissau suffers from substantial political instability and corruption, which limits democracy. Economic recovery is likely to be stronger than peers, driven by higher demand for agricultural products, but large dependence on the sector is a…

Nauru’s political landscape is stable, but is sometimes autocratic in nature. The country’s biggest challenge is to diversify the economy away from phosphate production. Nevertheless, planned infrastructure projects could enhance Nauru’s appeal. Its…

Political upheaval has been caused by transitioning to a new constitution, whilst economic freedom is suppressed, given ineffective observance of the rule of law. The economy could outperform peers, owing to strength in agriculture and greater…

Significant divisions exist between New Caledonia’s indigenous population and its European counterparts, creating political instability. Substantial reliance on nickel is a risk for the economy, which was in recession in 2020. The prospect of…

Dependence on the Netherlands for fiscal support is a source of uncertainty for Sint Maarten. Crime rates are high and the country’s sovereign credit has been downgraded. Excessive reliance on tourism caused a severe recession, given the impact of…

Somalia is characterised by corruption and extremely distressed government stability indicators. The economy has much potential, albeit from a low base, with the state prioritising foreign investment in the future. Nevertheless, reliance on…

Authoritarian rule has created political stability in Tajikistan, but economic freedom has suffered as a result. The economy is expected to outperform peers in the short term, but a narrow export base creates risks for the external sector. Tajikistan…

Authoritarianism is leading to ‘repressed’ economic freedom in Egypt, whilst corruption remains an issue. Although energy exports have fuelled strong economic growth, output is set to slow down in the short term, as extremely high inflation…

Italy’s high public debt is a threat to stability and negatively affects economic freedom, but anti-corruption legislation has been reinforced. Economic growth is forecast to be subdued, as rising borrowing costs bite, and foreign investment is…

Australia is one of the freest economies in the world, with limited corruption and improving government finances. The economy is facing slowing growth and inflation continues to be high, but the export environment is becoming more favourable as…

President Lula’s rise to power may not reduce political instability and polarisation in Brazil, and could negatively affect economic freedom, which is already ‘mostly unfree’. Exports have shown resilience and inflation is falling, but economic…

Although ‘mostly free’ for economic freedom and state finances have been improving, more corruption has been observed and its terrorism ranking has been deteriorating. Inflation is retreating, but economic growth is moderating, whilst energy import…

Recent policies are eroding democracy and corruption is rife, although economic freedom has improved in the short term. The economy has proven to be resilient, helped by higher exports, whilst inflation is moderating and the prospects for foreign…

Malaysia’s economic freedom is ‘moderately free’ and the state is addressing corruption. However, the new government has yet to prove its democratic credentials. The economy grew extremely strongly in 2022 and, although output expansion is expected…

Organised crime continues to negatively impact Mexico, owing to a weak rule of law, which is also beset by pervasive corruption, but government spending is a bright spot in economic freedom. The economy will continue to underperform peers, but…

New Zealand’s business climate is dynamic and ‘mostly free’ for economic freedom, whilst corruption is not a problem, but political instability is rising owing to the scheduled general election in October 2023. As inflation continues to trouble…

Weak state finances have caused frequent bouts of instability in governance. Additionally, the US’s peacefulness has worsened, but its business landscape remains resilient. Economic growth is slowing in the short term, but robust energy exports have…

Relatively high taxes and a lack of fiscal discipline are negatively affecting economic freedom, whilst France is prone to significant social unrest. Economic momentum is slowing, as higher borrowing costs adversely impact investment and confidence,…

India has a relatively stable political environment, but discrimination of minority groups is on the rise and the country has weak state finances. Economic development has outpaced peers and prospects for international trade are positive, although…

Spain is suffering from a bout of political instability and economic freedom has worsened. Although economic development is slowing down, it continues to attract foreign investors. However, high, albeit falling, inflation has taken its toll on…

An unbiased judiciary weakens the rule of law and corruption is more prevalent, but the business environment continues to thrive. Although the economy is expected to slow markedly in the short term owing to high inflation, medium-term prospects are…

Corruption continues to hamper economic freedom and fiscal health could be improved, but Romania has entered a period of political stability. Economic development is set to slow, as high inflation erodes purchasing power and has led to greater…

Despite the business landscape enjoying relative economic freedom, political instability has been a common feature of Slovakia. Although joblessness is relatively low, wages are increasing, also adding to very high inflation, whilst the war in…

Although the tax burden is reducing, the Philippines remains ‘mostly unfree’ for economic freedom and geopolitical tensions are growing. Solid remittances helped the economy to outperform peers and infrastructure upgrades could support output…

Canada’s political stability and solid economic freedom form the foundations for strong private sector development. The economy will slow in the short term, whilst the country remains prone to global commodity price changes and is overly reliant on a…

Economic freedom is lacking in Argentina and the political landscape is unstable, whilst corruption continues to infiltrate the highest echelons of power. Hyperinflation is causing economic pain; however, currency weakness could help exporters. A…

Democracy has seen progress in Colombia, but the rule of law is weakened by organised criminal factions. Although slowing, the economy has outperformed peers, but the country is grappling with high inflation and reliance on oil remains substantial.…

China’s increasing influence on Hong Kong’s political scene continues to undermine democracy. The economy is expected to recover well and inflation is under control, but the currency’s peg to the US dollar is leading to higher borrowing costs.…

Weakness in the rule of law negatively impacts economic freedom in Kazakhstan and the state’s authoritarian tendencies remain, but government finances are solid. Although the economy is set to perform relatively well, the export base is undiversified…

Pakistan’s ‘repressed’ status for economic freedom is largely due to political instability and the undue influence of the military. The economy performed better than peers, but suffers from high inflation and interest rates that suppress growth,…

Political opposition and civil liberties are restricted in Saudi Arabia, whilst its economic freedom continues to face challenges. The economy has performed strongly, but is set to slow down and reliance on oil remains high, although inflation is…

Thailand is prone to bouts of political instability, which has adversely affected economic freedom. Moreover, the military’s stranglehold and the influence of the monarch over politics have weakened the rule of law. Returning tourism has helped to…

Turkey is facing rising authoritarianism, along with the undermining of its secular society and democracy. Earthquakes in early 2023 are to negatively affect economic development considerably and increase state spending, whilst they have also clouded…

Economic freedom is negatively impacted by authoritarianism in China, with the state becoming increasingly repressive. The zero-COVID-19 policy has adversely affected the economy, but removal of restrictions could result in strong short-term…

With a very low tax burden and reforms aimed at the business landscape, the United Arab Emirates (UAE) enjoys economic freedom, although the state’s grip on society continues. Oil production cuts will moderate economic growth in the short term, but…

Although economic freedom is improving, the rule of law in Vietnam remains weak. Strong economic recovery has outpaced regional peers and inflation is not a major issue, but the external sector is susceptible to supply and demand shocks. Higher…

With its very low tax burden and strong state finances, Bulgaria enjoys economic freedom, although political instability has been common. High inflation is adversely affecting the economy, but joblessness remains low. Although skills shortages are…

South Africa’s political landscape continues to be unstable, hindering economic freedom, whilst social unrest negatively impacts peacefulness. Although inflation is falling, the power crisis is adversely affecting economic development and…

A low tax burden adds to Hungary’s economic freedom, but corruption remains an issue and state finances are under pressure. Economic performance has outpaced peers and unemployment is low, but inflation remains very high and will adversely impact…

Economic freedom in Japan continues to benefit the private sector, as does limited corruption, but fiscal health remains weak. Unemployment is low, but the economy faces external forces that are weakening its performance. Ageing and depopulation…

Although corruption is a problem, the Czech Republic has strong adherence to economic freedom and solid government finances. Economic growth is set to slow amidst persistent inflation, but the foreign investment landscape is vibrant. Whilst…

Weakness in the rule of law is negatively impacting economic freedom in Nigeria, as does pervasive corruption. Significant reliance on the oil sector can lead to volatile economic development, whilst persistently high inflation is adversely affecting…

Singapore’s economic freedom is the best in the world, although civil liberties are restricted and corruption is on the rise. Economic momentum is slowing and the external sector is susceptible to global cyclical changes, but inflation is well…