site.btaBulgaria Ranks 48th in Economic Freedom, Fraser Institute 2017 Report Shows

Sofia, September 28 (BTA) - Bulgaria ranks 48th among 159 countries and territories in terms of economic freedom, shows the Fraser Institute 2017 Economic Freedom of the World Report distributed for Bulgaria by the Institute of Market Economy. The report presents the outlines of 2015 - the last year for which official data for all countries are available.

The report measures economic freedom (levels of personal choice, ability to enter markets, security of privately owned property, rule of law, etc.) by analysing the policies and institutions of 159 countries and territories. The countries are ranked by a scale of 0 to 10, 10 being the maximum economic freedom.

Bulgaria gets maximum points for the flat tax, but the final result (7.01 points) has been reduced because of the large amount of government spending and the high level of state transfers and subsidies. Bulgaria's points continue to be low in the field of the judicial system and the right of ownership. The main reasons for that are low points for independence and impartiality of the court, as well as confidence in police. The ranking shows that for another year Bulgaria has the lowest marks for independence of the court: 3.37 points.

In the category of "Sound money" Bulgaria has been receiving the highest points for years (9.36), the report shows. The reasons for that are that the currency board continues to guarantee sound money and inflation in 2015 was low and even negative. Bulgaria has garnered the maximum points for the opportunity for free maintenance of bank accounts in foreign currency. In terms of international trade, it has been awarded 8.13 points, the result reflecting the low customs rates in international trade and also the negative influence of non-tariff restrictions.

Credit, labour and business regulation have been awarded a total of 7.57 points. The result is a consequence of the relatively weak regulation of credit markets and at the same time the severe regulation of labour and business. The points reflect the serious regulations at employment and dismissal of workers, the cumbersome and costly administration, the numerous administrative requirements to business, as well as the high perception of corruption.

The report also shows that economic freedom worldwide has increased slightly compared to last year's edition and that the gap between developed and developing countries has closed considerably in the last three decades.

Hong Kong and Singapore, once again, occupy the top two positions. The other nations in the top 10 are New Zealand, Switzerland, Ireland, the United Kingdom, Mauritius, Georgia, Australia, and Estonia.