TAIPEI (Taiwan News) — Taiwan ranked fourth globally and second in Asia in economic freedom in the Heritage Foundation's global economic freedom index.
In the American conservative think tank's 2025 Index of Economic Freedom report, Taiwan kept its fourth-place ranking in economic freedom out of 184 countries, with an overall score of 79.7, a drop of 0.3 points from last year. Among the 39 Asia-Pacific countries, Taiwan maintained its second-place rank from last year.
The report noted Taiwan's economic freedom score surpassed world and regional averages. Taiwan lost its status as a "free" economy, dipping into the “mostly free” category.
The think tank lauded Taiwan as "one of the world’s five freest economies and an exemplary free-market democracy." The organization attributed Taiwan's high ranking to its “strong commitment to the rule of law and openness to global commerce.”
According to the Heritage Foundation, Taiwan's economy flourishes under a "well-functioning institutional regulatory framework." The foundation described its small and medium-sized businesses as the country's "backbone of economic growth and resilience."
The report also said Taiwan's solid legal framework ensured the protection of property rights and observed that the country has maintained monetary stability in the face of inflationary pressures.
Taiwan scored over 80 in five out of the 12 categories and surpassed 90 in judicial effectiveness (94.4), government spending (90.1), and fiscal health (91.3). It had relatively lower scores for labor freedom (69) and financial freedom (60).
On Tuesday, Edwin Feulner, founder of the Heritage Foundation, handed the latest index to President Lai Ching-te (賴清德) at the Presidential Office in Taipei. Feulner congratulated Taiwan on its ranking and extended his congratulations to Lai on his election win last year.
Lai said he looked forward to hearing Feulner's thoughts on potential means to deepen relations between Taiwan and the US. He noted that the report highlighted Taiwan's sound legal foundation and ideal investment environment.
The Ministry of Foreign Affairs on Wednesday posted the foundation's latest ranking for Taiwan on X and said it is a “powerful testament to our commitment to free markets, democratic principles, and global partnerships.” The ministry pledged to keep forwarding international cooperation through shared innovation, progress, and resilience.
