Commodities

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…

High public debt and an inefficient judiciary characterise Sao Tomé e Príncipe (STP). Although the economy was negatively impacted by the Coronavirus (COVID-19) pandemic, adversely affecting tourism and commodity exports, recovery is nearing its…

Samoa is a politically stable country with a budget surplus. However, the large influence of the state and significant exposure to tourism could weigh on economic performance in the medium term. Although the country is young and growing, its…

Rwanda's political landscape is marked by a strong ruling party and improving global peace rankings, though challenges in fiscal health persist. Economic growth is set to surpass regional average, fuelled by consumption and services sector, despite…

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…

Réunion, governed as a French overseas department is politically stable and has solid regulatory environment. Réunion’s economy is marked by high unemployment and dependency on imports, with France being a major economic support. The island has a…

Low taxation adds to Qatar’s economic freedom, but democracy is lacking and power is hereditary. Hydrocarbons are the mainstay of the economy, making the export base very undiversified, but inflation is falling and infrastructure is expected to be…

Puerto Rico, a US territory, grapples with economic challenges such as high unemployment and debt amid debates about its political status. Culturally diverse, the island faces social issues like poverty and emigration. Yet, initiatives in technology,…

Corruption amongst high-ranking state officials has heightened political instability in Portugal, whilst public debt remains elevated. Economic momentum is slowing, but inflation has fallen markedly and technological prowess is supporting foreign…

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…

Although political instability and corruption continue to be themes in Peru, economic freedom is the third best in South America. Inflation is falling, but the economy is slowing and copper exports could be hindered further, whilst uncertainty in the…

A weak rule of law and endemic corruption hamper economic freedom in Paraguay, although the tax burden remains very low and government finances are sustainable. In the medium term, the economy will outperform the regional average and inflation has…

Papua New Guinea faces considerable hurdles, marked by pervasive corruption and limited economic freedom. Country’s economy, heavily reliant on the uncertain global commodity market, is further strained by low productivity due to extensive…

Corruption undermines economic freedom in Panama and protests have been widespread, although state finances are strengthening. Economic momentum has slowed, but foreign investment is increasing and the Panama Canal continues to play an important role…

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,…

Oman is managing its state finances well and its absolute monarchy creates stability, but economic freedom remains constrained. Whilst the economy is slowing, high oil prices have been supportive and inflation is low, but reliance on oil is large and…

Norway enjoys considerable economic freedom and adheres strongly to the rule of law, whilst state finances are in rude health. Output development is slowing, owing to challenges for the global economy, but inflation is under control and exports have…

Although economic freedom has worsened and political instability persists, state finances have improved and taxation is low. North Macedonia’s economy has struggled under the weight of elevated inflation, but this is falling and foreign investment…

North Korea’s autocratic regime is the most repressed globally for economic freedom, which propagates corruption, but sanctions could bring the country to the negotiating table. The command economy has been crippled by these sanctions, and remains…

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…

The political climate in Niger is marked by corruption and external influences, including the presence of terrorist groups and foreign military aid. Economically, the country is poised for above-average growth, heavily reliant on agriculture and…

An authoritarian regime using violence has reduced peace in Nicaragua and caused political instability. Consequently, the economy has suffered a prolonged recession, which has been exacerbated by the Coronavirus (COVID-19) pandemic. A major trade…

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…

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…

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…

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…

Namibia has a relatively stable political environment, reflecting positive economic prospects. Investment in telecommunications is set to boost revenue growth in the coming years. Rapid population and consumption growth indicate a demographic…

Myanmar’s military has created significant instability for the country, whilst corruption continues to be rife and economic freedom has worsened. High inflation is causing the economy to stall and the foreign investment climate has worsened…

In Mozambique, ongoing conflict and corruption exacerbate economic challenges. The economy is hindered by high unemployment and reliance on agriculture. The young and growing population remains impoverished, facing healthcare and educational hurdles,…

Although state finances are set to improve through higher taxation, economic freedom is challenging and corruption persists. Owing to lower agricultural output, the economy has slowed down markedly, but inflation is under control and fertiliser…

In Mozambique, ongoing conflict and corruption exacerbate economic challenges. The economy is hindered by high unemployment and reliance on agriculture. The young and growing population remains impoverished, facing healthcare and educational hurdles,…

Mongolia is a peaceful country, but with high levels of corruption and fragile governance. The economic growth should accelerate in 2023, supported by the vast mining sector, but the country’s dependence on this sector leaves it vulnerable.…

Although Monaco enjoys political stability, questions remain over transparency in financial services. Given that tourism is a significant revenue earner, Monaco’s economy experienced a severe recession stemming from the Coronavirus (COVID-19)…

Although Moldova is ‘moderately free’ for economic freedom, Russia’s influence operations may spur instability. Economic growth to rebound over the near term, outperforming regional average. The population is shrinking and ageing rapidly, which…

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…

Mauritius boasts a stable democracy and mature institutions, contributing to high economic freedom. Already highly diversified, the economy is set to grow in sectors like agro-processing and medical tourism. Country’s diverse population and low…

Mauritania suffers from political instability, whilst ethnic tensions are also a destabilising factor. However, government finances are relatively robust with fiscal room to manoeuvre. Recent hydrocarbon finds and rising commodity prices are expected…

Although Martinique does not suffer from undue corruption, its political environment has been prone to secessionist tendencies. Given that the economy is highly dependent on tourism, its recovery from the Coronavirus (COVID-19) pandemic remains slow.…

Malta is mostly free, helping businesses to flourish, but corruption is relatively widespread compared to regional peers. Foreign investors flock to the island, eager to participate in the financial services sector, but dependence on tourism and…

Mali's political scene is marked by instability, significant military influence, and widespread corruption, with large areas beyond government control. Mali’s undiversified economy is reliant on international aid and its agriculture sector. The…

Political stability is being addressed by the Solih government, in particular state corruption. Economic growth should return in 2021, following the deleterious effect of the Coronavirus (COVID-19) pandemic in 2020, but the country needs to move…

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…

Malawi has relatively stable governments, yet deteriorating global peace and terrorism rankings suggests concerns over increasing violence. Economic forecasts are optimistic, with growth expected to exceed that of regional peers over the long term,…

Madagascar faces political instability and limited economic freedom, hindering structural reforms. While the primary sector underpins the economy, high inflation and elevated poverty rates challenge growth. Despite a young, expanding population and…

Macau, China benefits from political stability, but its ageing population could make increasing demands on government finances in the future. As the world’s largest gambling hub, Macau’s economy is heavily dependent on revenues from casinos, making…

A lack of corruption, government stability, and high levels of economic freedom characterise Luxembourg. Strength in financial services and adaption to remote working has served the economy well, which could outperform peers going forward.…

Although Lithuania enjoys economic freedom and solid state finances, relations with neighbours have worsened and add to uncertainty. The economy has been hindered by the highest inflation rate in the eurozone and output growth could enter negative…

Liechtenstein showcases governmental stability, minimal corruption, and high economic freedom. Its robust financial sector and swift adaptation to remote work fuel its economy, potentially outpacing peers. However, an aging population may strain…

Years of conflict have led to political instability in Libya. Rule of law is ineffective and corruption remains a major problem. Heavy reliance on hydrocarbons makes the economy extremely vulnerable to oil price shocks, whilst the precarious security…

Liberia has managed its government finances effectively. Peacefulness in the country is also increasing, following turbulence caused by the 2017 elections, but corruption persists. The economy is set to outperform the regional average, whilst foreign…