Hong Kong remains the world’s freest economy according to the findings of the Economic Freedom of the World: 2006 Annual Report released today by the Cato Institute.

The annual report, co-published by the Cato Institute, in conjunction with the Fraser Institute of Canada and over 60 other research institutes around the world, features a comprehensive index that measures the degree to which the policies and institutions of countries are supportive of economic freedom.

Hong Kong retains the highest rating for economic freedom, followed by Singapore. New Zealand, Switzerland, and the United States tie for third.

Apart from the overall top ranking, Hong Kong also ranks first in “freedom to trade internationally” and second in “size of government”, “regulation of credit, labor and business” and “labor market regulations”.

Commenting on the index’s findings, Hong Kong Commissioner to the United States, Miss Margaret Fong, said: “I am glad that the Cato Institute has once again ranked Hong Kong as the freest economy in the world. The index demonstrates Hong Kong’s commitment to free-market principles including the free flow of capital and information as well as a level playing field. This also strengthens the city’s position as an international financial and business center.”

This year’s publication ranks 130 nations for 2004 – the most recent year for which data are available.

Thirty-eight components and sub-components are utilized to create a comprehensive index and to assess the degree of economic freedom in the following five areas: size of government; legal structure and security of property rights; access to sound money; freedom to trade internationally; and regulation of credit, labor and business.

The first Economic Freedom of the World Report, published in 1996, was the result of a decade of research by a team which included several Nobel Laureates, such as Milton Friedman, and over sixty other leading scholars in a broad range of fields, from economics to political science, and from law to philosophy.

The report can be found on the Web site: [http://www.cato.org/pubs/efw/].