TAIPEI (Taiwan News) — In the 2023 Index of Economic Freedom, Taiwan is ranked fourth best in the world, its top result since records began in 1995.

The nation's overall economic freedom score of 80.7 put it in second place out of 39 economies in the Asia-Pacific region, just behind Singapore, which was in first place globally with a score of 83.9. Switzerland and Ireland were second and third, respectively.

However, overall, the Asia-Pacific’s score was 58.2, which was just below the world average of 59.3 and “the lowest it has been over the past two decades,” according to Washington-based The Heritage Foundation. The index covers 12 financial freedoms, including property rights, in 184 countries.

The U.S. was 25th and Japan 28, while China was in 154th position and described as “repressed.” Bottom of the pile was North Korea at 176. Countries such as Afghanistan and Ukraine were not ranked.

Taiwan’s economy was rated “free” by the index. Its citation read:

“A strong commitment to the rule of law and openness to global commerce have enabled it to become a global leader in economic freedom. The dynamic economy has benefitted from a well-developed institutional framework, a tradition of private-sector entrepreneurial dynamism, and open-market policies that facilitate the free flow of goods and capital.”

The Heritage Foundation said foreign investment was welcome in Taiwan and the financial sector continued to evolve. It said the regulatory sector was efficient and “business freedom is well protected.” The rule of law was praised and taxation was reasonable.

However, it was also made clear in the report, “China’s ongoing attempts to isolate Taiwan diplomatically hinder its economic growth and threaten its presence in overseas markets.

“Taiwan’s trade-dependent economy is driven by a competitive manufacturing sector that encompasses electronics, machinery, petrochemicals, and information and communications technology products.”