Hong Kong has once again been named the world’s freest economy, according to the annual report from the Fraser Institute released on Monday.
The global think tank’s “Economic Freedom of the World” report ranked the city first out of 165 economies, up one spot from the previous year. Hong Kong topped the rankings in two key areas – “Freedom to trade internationally” and “Regulation.”
In a statement, the Hong Kong government said the ranking “fully reflects the international recognition” of the city’s free market and business-friendly environment. Officials credited the advantages under the “one country, two systems” framework, including the common law system, rule of law, independent judiciary, and free flow of capital and information.
“These factors have made Hong Kong an ideal city for doing business,” the government said.
Looking ahead, Hong Kong pledged to further integrate with national development strategies and work to maintain its status as an international financial, trading and talent hub. The city plans to deepen collaboration with the Greater Bay Area to drive its economic growth.
The annual report from the Fraser Institute, a Canadian public policy think tank, is widely watched as a barometer of economic freedom worldwide. Hong Kong has topped the rankings for over two decades, fending off competition from other financial centers like Singapore.
While the city has faced political turmoil in recent years, analysts say its fundamentals as a business-friendly economy remain intact. However, some have warned that Beijing’s tightening control could eventually erode Hong Kong’s economic liberties.