South Africa is ranked the 90th most economically free country in the world. This is according to the 2020 Economic Freedom of the World report, released by the Fraser Institute. The 2020 ranking is based on 2018 data.
The 2020 ranking is actually a slight improvement on the previous year, when South Africa was ranked 93rd. However, South Africa’s trend has been poor and in 2000 the country was ranked 58th.
The ranking is based on five pillars. These are: size of government, legal system and property rights, sound money, freedom to trade, and regulations around the labour market, credit, and doing business.
There is also a strong correlation between economic freedom and economic prosperity.
The top ranked countries in the most recent index were Hong Kong, Singapore, and New Zealand. However, the recent intervention by China into Hong Kong’s affairs could influence the region’s future ranking. The highest ranked African country was Mauritius at 7, while the lowest ranked country was Venezuela.
IRR President, Russell Lamberti, tweeted that the index tended to overestimate South Africa’s economic freedom and did not take into account issues such as BEE and a failing state.
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