T&T at #63 among 184 countries on Economic Freedom index

Hong Kong ranks as #1 on Index of Economic Freedom

The latest annual Index of Economic Freedom done for The Heritage Foundation suggests that 2011 was not a good year for the Global Economy.

The survey of 184 countries for 2012 showed that the average was 59.5 on a scale of 0 to 100, down 0.2 from the previous year. In the Caribbean, Trinidad & Tobago ranks at #63, below St Lucia (24); Barbados (37); the Bahamas (46); St Vincent and the Grenadines (52) and Jamaica (58).

The Index scores countries on 10 freedoms across 4 categories – from the rule of law and the size of government to the efficiency of regulations and the openness of markets.

The number one country in the world is Hong Kong. At the bottom of the list are Cuba, Zimbabwe and North Korea.

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The decline in Economic Freedom has been blamed mostly big spending governments in Europe and North America. An excerpt from the report states:

"Rapid expansion of government, more than any market factor, appears to be responsible for flagging economic dynamism. 

"Government spending has not only failed to arrest the economic crisis, but also — in many countries — seems to be prolonging it. The big-government approach has led to bloated public debt, turning an economic slowdown into a fiscal crisis with economic stagnation fueling long-term unemployment."

For the 18th year in a row, Singapore and Hong Kong took the top 2 spots, and for the first time, the top 4 spots were all taken by nations in the Asia-Pacific region.

Europe saw broad declines, with 31 of the continent's 43 nations suffering drops, but the region still scores very well overall.

The index has been published in conjunction with The Wall Street Journal every year since 1995.

Source: Business Insider International