Slovakia ranked 43rd out of 165 countries in the latest economic freedom ranking. In the Economic Freedom of the World (EFW) Index, Slovakia achieved an overall score of 7.45 and placed in the second quarter of the ranking. However, it trails countries such as the Czech Republic and Austria, which are among the top quarter of the world’s economically freest countries. The Institute for Freedom and Entrepreneurship (ISP), the Slovak partner of the index’s publisher, Canada’s Fraser Institute, reported this on Tuesday. The current ranking is based on data from 2024.
ISP Chairman Ján Oravec pointed out that, across the five areas assessed by the index, Slovakia performs best in the area of trade, where it ranks 27th, and in monetary stability, where it ranks 38th. “The fact that Slovakia uses the euro in itself gives us a better rating than Hungary and Poland,” he noted. Slovakia also ranks above the global average in its legal system, placing 37th. Its weakest areas are the size of government, where it ranks 108th, and regulation, where it ranks 90th.
He also noted that Slovakia has consistently ranked below Sweden, which is regarded as a symbol of the welfare state. “So, we should take Sweden as a model, but specifically in terms of how it liberalises the conditions for doing business,” he said.
Monika Naďová Krošláková, President of the Slovak Business Alliance (PAS), expects Slovakia’s position in the ranking to deteriorate in the coming years. Among the individual areas covered by the index, she highlighted the administrative burden on businesses. “When an entrepreneur is deciding whether to enter the market or expand their business, this is the area they will look at,” she said. She stressed that the predictability of business conditions also has economic value for entrepreneurs, and Slovakia is also lagging behind in this area.
Hong Kong has held the top position in the ranking for a long time, with a current score of 8.53, although its score has fallen sharply since 2018. It is followed by Switzerland (8.45), Singapore (8.43), New Zealand (8.38) and the United States (8.21). At the bottom of the ranking are Venezuela (2.94), Zimbabwe (3.62), Sudan (4.16) and Libya (4.29). Among EU member states, the economically freest are Ireland (8.16), Denmark (8.13) and Finland (7.96).
Matt Mitchell of the Fraser Institute stressed that economic freedom has a key impact on quality of life and human well-being. According to the study, people living in countries with the highest levels of economic freedom earn approximately seven times more, live an average of 14 years longer, and face significantly lower rates of poverty and infant mortality compared with people in the least economically free countries. In addition to higher incomes and a better environment, economic freedom also provides people with more leisure time and greater overall life satisfaction.
Source: TASR
