Uruguay obtained a score of 7.06 in the economic freedom ranking prepared by Fraser Institute, managing to advance three steps and occupying a position above average; The report aims to represent the evidence regarding the economic and social benefits provided by the economic freedom.
The 2023 Economic Freedom Report Fraser Institutein conjunction with the Center for Development Studies (CED) It is led by Singapore with a score of 8.56, in second place is Hong Kong with 8.55, while third place belongs to Switzerland with 8.47 points.
While, Uruguay It occupies position 65 with a score of 7.06, improving its score by one tenth compared to the previous report, while managing to place itself three steps higher. However, the country has represented a very stable position in this index over the last 20 years, oscillating between 7 and 7.5 points.
According to the official website of Fraser Institute, the index “measures the degree to which countries’ policies and institutions support economic freedom.” While 45 data points are used to measure the index along with an adjustment for legal gender rights to measure the extent to which women They have the same level of economic freedom That men.
The keys to Uruguay
The country occupies the second quartile of the ranking, between the most free and the least free, along with countries such as Mexico, Paraguay, France, Italy, Poland and Saudi Arabia. With this, the degree of economic freedom is measured in five broad areas where Uruguay was able to stand out in two of them.
The first has to do with the size of the government which, according to the institute, the increase in public spendingthe taxes and the size of state-controlled companies compromise individual choice, reducing economic freedom. In this area, Uruguay obtained a score of 6.39 – ranging from 1 to 10 – and ranks 95 out of 165.
The second area corresponds to legal system and private property rights which, according to the Fraser Institute, “is a central element of both economic freedom and civil society.” On this edge, the Uruguay It ranked 55th with a total score of 5.87 points.
What refers to the area of “Healthy money”, as it is cataloged in the index, it has to do with the characteristics of a solid coin where the inflation is not high or volatile and savings can be generated legitimately. There, the country obtained a good score with 8.86 points and ranked 75th.
Meanwhile, the freedom to market internationally, something that Fraser Institute defines it as “the essence of economic freedom”, the Uruguay It is ranked number 61 with a score of 7.50. Finally, in the area of regulation, that place where governments apply tools that impede free trade, the country ranked 76th with a score of 6.66.
Source: Ambito
