New Zealand Ranked 3rd for Economic Freedom

February 5, 2016 New Zealand Finance

New Zealand is the third freest economy in the world, beaten only by Singapore and Hong Kong.

Earlier this week the Heritage Foundation released its annual Index of Economic Freedom, ranking New Zealand as the third freest economy in the world.

New Zealand’s score on the Index has fallen by 0.5 points since the previous Index, yet Hong Kong and Singapore, the only countries to be ranked above New Zealand saw a fall of 1 point and 1.6 points respectively.

The fall in New Zealand’s score was attributed to a perceived loss of business freedom and labour freedom, although these drops were offset by increases in fiscal freedom, trade freedom and government spending.

No significant changes in freedom were noted in regards to property rights, freedom from corruption, investment freedom, and financial freedom.

It was also noted that the open markets and regulatory efficiency seen in New Zealand have greatly aided the country, but some concern were raised regarding the controls over government spending.

Photo By: Nick Kean