Greece ranks 61st among 165 countries and jurisdictions in this year’s Economic Freedom of the World (EFW) Index, published by KEFiM in cooperation with the Canadian Fraser Institute. Greece receives an overall score of 7.17/10, compared with 7.01/10 in last year’s edition, marking a rise of 2 places in the global ranking, from 63rd to 61st place.
This year’s study uses 2024 data and places Greece in the second quartile of the countries examined.
Among the 27 member states of the European Union, Greece occupies 25th place, compared with 24th last year. Lower in the overall global ranking are Croatia, in 64th place, and Poland, in 65th.
In the overall ranking, Greece is tied with Brunei and the Philippines. Immediately above it is Saudi Arabia and immediately below it is Croatia.
Greece improves its score in four of the five individual areas of the Index. The greatest improvement is recorded in the size of government, while a positive change is also noted in freedom to trade internationally and in the regulatory environment. In sound money, the score improves marginally, although the country’s relative position declines. By contrast, the score in the legal system and property rights declined marginally from 6.23 to 6.22.
Why Greece’s ranking in the Economic Freedom Index concerns us all:
- It reflects how freely we can work, do business, engage in transactions, enter into contracts, and make use of our property.
- It examines factors that directly affect everyday life, such as the rule of law, protection of property, sound money, taxation, and the regulatory environment.
- Countries with higher economic freedom record, on average, significantly higher incomes, even for the poorest 10% of the population.
- In the most economically free countries, people have on average a higher life expectancy, work fewer hours per week, and report greater satisfaction with their lives.
- The Index is also linked to issues concerning the quality of institutions and citizens’ lives, such as less corruption and a cleaner environment.
In short, economic freedom concerns not only businesses or economists, but also the choices, opportunities, and everyday life of every citizen.
Greece’s performance by area
- Size of government: 5.24/10 – 144th place
- Legal system and property rights: 6.22/10 – 46th place
- Sound money: 9.09/10 – 49th place
- Freedom to trade internationally: 8.65/10 – 30th place
- Regulatory environment: 6.64/10 – 70th place
Compared with last year’s edition of the Index, the greatest improvement in Greece’s score is recorded in the size of government, from 4.89 to 5.24, while improvement is also noted in freedom to trade internationally, from 8.43 to 8.65, and in the regulatory environment from 6.46 to 6.64. A marginal improvement is also recorded in sound money, from 9.03 to 9.09. By contrast, the score in the legal system and property rights declines marginally from 6.23 to 6.22.
The international picture
At the top of the global ranking is Hong Kong, followed by Switzerland, Singapore, New Zealand, and the United States. Venezuela occupies the last place.
The report notes that economic freedom worldwide has not yet returned to pre-pandemic levels.
The importance of economic freedom is also reflected in the large differences recorded in citizens’ daily lives: In the countries with the greatest economic freedom (in the quartile - the 25% - of countries with the highest performance in the Index), average income is almost 7 times higher and people live on average 14 years longer compared with the countries with the least economic freedom (in the quartile - the 25% - of countries with the lowest performance in the Index).
The President of KEFiM, Nikos Rombapas, stated:
“Based on the updated data, Greece records a small but substantial improvement in economic freedom, rising two places in the global ranking. This improvement is reflected in four of the five areas examined by the Index.
However, among the 27 member states of the European Union we fall from 24th to 25th place. When we improve but lose ground, it means that the countries with which we compete for investments, people, and opportunities are moving faster. Progress is real, but the pace is not enough to close the gap with the rest of Europe.”