Publication of Economic Freedom of the World 2025
In News
What Happened
Why It Matters
Background
History & Context
What Changed
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Global Economic Freedom: BEFORE the COVID-19 pandemic, global economic freedom had been steadily rising since 2000. NOW, pandemic-era policy responses have erased nearly a decade of gains, leading to a noticeable global decline.
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Hong Kong's Institutional Strength: BEFORE 2018, Hong Kong enjoyed extremely high scores across all metrics without major institutional interference. NOW, despite remaining ranked 1st overall, its scores in the legal system and property rights have deteriorated significantly due to the 2020 national security law.
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US Trade Freedom: BEFORE recent protectionist measures, the US maintained a stable trade ranking. NOW, the report estimates that 2025 tariff policies would drop the US from 56th to 76th in the freedom to trade category, negatively impacting its overall score.
Prelims Angle
NCERT Connection
Practice Questions
Q1
Correct Statement(s)Which of the following statements is/are correct regarding the Economic Freedom of the World 2025 Report? 1. The report is co-published by the Cato Institute and the Fraser Institute. 2. Hong Kong lost its top position in the 2025 ranking due to the deterioration of its legal system following the 2020 national security law.