Nepal falls to 90th place in global economic freedom ranking
KATHMANDU: Nepal has fallen to 90th place among 165 jurisdictions in the 'Economic Freedom of the World: 2026 Annual Report', released today by the Samriddhi Foundation in collaboration with Canada's Fraser Institute.
Despite dropping one place from 89th last year, Nepal's overall economic freedom score rose slightly to 6.59 out of 10 from 6.58 in 2025. The underlying data indicate the country's economic freedom score has fully recovered from a pandemic-era decline, having fallen from 6.52 in 2019 to 6.31 in 2020.
The 2026 edition of the report assesses 165 jurisdictions across five main areas of economic policy and institutions. Nepal's performance varied across these categories. The country rose to 117th from 126th in freedom to trade internationally, with its score improving from 6.21 to 6.39.
However, Nepal saw declines in the other four categories. In regulation, the nation dropped to 50th from 37th, and in size of government, it fell to 51st from 49th. For the legal system and property rights, the ranking declined to 96th from 91st. In the sound money category, Nepal dropped to 101st from 96th, although its score in this area increased to 7.57 from 7.37.
Of the 24 specific sub-indicators analysed within these five areas, Nepal improved in seven, declined in six and maintained its previous ranking in 11.
Published in Nepal by the Samriddhi Foundation for the 19th consecutive year, the report highlights the correlation between economic freedom and overall well-being. According to the research, countries in the top 25% for economic freedom had an average per capita income of $65,596 in 2024, compared with $9,552 for those in the bottom 25%. Life expectancy averages 80.7 years in the top quartile, compared with 67.1 years in the bottom group.
"Where people are free to pursue their own opportunities and make their own choices, they lead more prosperous, happier and healthier lives," said Fred McMahon, Dr Michael A. Walker Research Chair in Economic Freedom at the Fraser Institute.
Globally, Hong Kong remains in first place, followed by Switzerland, Singapore, New Zealand and the United States. The United Kingdom, Finland and the Netherlands tied for the final spot in the top 10. Neighbouring India ranked 88th, while China stood at 110th. Venezuela remains in the final place among the lowest-ranked nations, which also include Sudan, Zimbabwe and Libya.
