Canada has surpassed the U.S. in economic freedom, according to a report released today by public policy think-tank, the Fraser Institute.
Canada ranked sixth in the world for economic freedom with a score of 7.81 out of 10, while the U.S. fell to 10th overall with a score of 7.6, as per the Economic Freedom of the World: 2011 Annual Report.
However, Canada’s score decreased this year from 7.95 in 2010, part of an overall decline in levels of economic freedom around the globe.
Fred McMahon, vice-president of international policy research at the Fraser Institute, said “Despite Canada’s relatively high score, there is much cause for concern over the worldwide decline in economic freedom, which dropped to its lowest level in nearly three decades.”
“In response to the American and European debt crises, governments around the world are embracing perverse regulations and this has huge, negative implications for economic freedom and financial recovery,” McMahon saidf.
The report indicated that the U.S. experienced one of the largest drops in economic freedom, falling to 10th place overall from sixth in 2010. Much of this decline is a result of higher spending and borrowing on the part of the U.S. government, and lower scores for legal structure and property rights.
Hong Kong topped the rankings of 141 countries, followed by Singapore, New Zealand, Switzerland and Australia.
Economic freedom was measured in five different areas: size of government; legal structure and security of property rights; access to sound money; freedom to trade internationally; and regulation of credit, labour, and business.
Jennifer Harrison
Twitter: JHarrisonBIV