Estonia Ranked Among Most Free Economies in the World
- Written by: Bridgewest
- Posted: 2015-02-23
According to the last economic freedom index, Estonia was ranked the eighth freest economy in the world, and the second freest in Europe. The economic freedom index is published by the Heritage Foundation in Washington DC on an annual basis.
What were the factors leading to Estonia’s economic development?
Compared to last year when Estonia was ranked 11th worldwide, this year Estonia increased its overall score by 0.9 points to 76.8 which lead to its ascent to the 8th place. In Europe, Estonia came second after Switzerland. Within a year, Estonia managed to improve its economy from six out of ten indicators employed by the freedom index. The highest increases were related to reducing corruption, protection of labor and freedom of Estonian companies.
According to the Heritage Foundation economic freedom index, Estonia’s economy has proven resilient throughout the Eurozone crisis and even managed to advance. In terms of economic freedom, starting with 2011, many improvements were registered in the property rights regime and in regards to the ease of doing business in Estonia index. According to the Heritage Foundation the government’s minimal interference and the changes brought to the Estonian taxation system have increased the country’s economic freedom and have also opened the market for more foreign investments. Among the indicators that helped Estonia rise in the 2015 Index of Economic Freedom, the employment sector played an important role especially at European level. At global level, Estonia was surpassed by Hong Kong, Singapore, New Zealand, Australia, Switzerland, Canada and Chile.
What are Estonia’s economic goals for the next period?
The government’s goals are directed towards the creation of policies that sustain economic growth that should result in the enhancement of the population’s welfare, but also in the improvement of the trading relations with developed countries. The government considers the decline of the global economy had a significant impact on Estonia’s trading activities, but nevertheless the country managed to cope quite well with the difficulties due to its open market economy. The main topics on the government’s agenda for the following years are to support Estonian companies in their development and to improve the labor market. The government’s priorities until 2020 are to increase Estonia productivity to 73% of the EU average in 2015 and to reduce the unemployment rate. Foreign investments will definitely play a key-role in the government’s plans and businessmen can learn more about investment opportunities from our Estonian lawyers that will make sure to keep track on all changes in the business and legal framework of the country.
We will keep our readers informed about the future developments this year brings based on Estonia’s ranking among the world’s freest economies.