site.btaReport: Bulgaria Ranks 52nd in Economic Freedom Out of 165 Countries

Bulgaria ranks 52nd in the world in terms of economic freedom for 2024, according to the latest survey of the Canadian Fraser Institute, the Institute for Market Economics (IME) said. The study measures the degree of economic freedom in 165 countries around the world.  

Bulgaria received a score of 7.16 out of a maximum of 10 points, ranking 52nd in the world. Again, the country scores lowest in terms of the rule of law, and Bulgaria lags behind all other EU member states from Central and Eastern Europe. The survey also records a distinct drop in the score on monetary stability, which is a consequence of high inflation in 2022 and 2023. The combination of all these factors leads to economic freedom retreat, with Bulgaria outside the top 40 countries in the world in each of the five leading categories of the survey. Topping the rankings for economic freedom are Hong Kong, Singapore and Switzerland.

The IME says that the results of the study support their observations and recommendations in their recently published report "Economic Freedom in Bulgaria: Review and Recommendations for Growth", which assesses the country's performance in the last three decades and looks for the reasons for lagging behind successful countries in Central and Eastern Europe.

The IME report shows that over the past 25 years economic freedom in Bulgaria has been growing, the country has seen almost constant economic growth and has seen a significant improvement in convergence indicators with major European economies. However, the retreat of economic freedom in the years following the pandemic poses a serious challenge to development potential. In the context of a prolonged political crisis and on the verge of another general election, economic freedom assessments provide a good guide to priorities and policies that can support growth, the IME said.

The IME also notes that economic freedom requires a clear commitment to maintaining macroeconomic stability and a good business environment, which includes limiting macroeconomic imbalances, the withdrawal of the state from certain areas and policies to support competitiveness. Sound budgetary policies, compliance with fiscal rules and keeping direct taxes low are key. The focus also remains on effective anti-corruption policies and sustained efforts to protect the independence and shine a light on undue influence in the judiciary, the IME said.

The Economic Freedom Around the World study, published by the Canadian Fraser Institute, reports that the freest countries are at least eight times richer than the least free and more than twice as rich as the countries in the second tier of the ranking. The data also show that the incomes of the poorest 10% of society are significantly higher in the group of freest countries, indicating that freedom leads to both prosperity and more opportunities for all groups in society and bridging inequalities.

Life expectancy is also significantly higher in the freest countries, reaching more than 80 years, compared to only 65 years of life expectancy in the least free countries.