The Heritage Foundation released today its 2013 Report on the Index of Economic Freedom, confirming Macao’s high position in the world and regional rankings of economic freedom. The SAR’s score of economic freedom exhibits little change at 71.7, compared to 71.8 for last year, and making its economy the 26th freest among 177 economies.

Based on 10 benchmarks, the Report assesses the degree of economic freedom of individual economies around the world. Macao receives relatively high score in benchmarks such as government spending, trade freedom, investment freedom, monetary freedom, and financial freedom.

The Foundation’s 2013 Report says that flexibility and openness to global trade and investment have been the cornerstones of Macao’s dynamic economic expansion. Macao largely maintains its transparent, free-market economic structure. The overall entrepreneurial environment is generally adequate. The rule of law is relatively well respected. Tax rates are competitively low, tariff and non-tariff barriers are nonexistent, and foreign investors can conduct business on the same terms as nationals.

In the Asia-Pacific region, Macao is ranked 7th out of 41 economies, just behind Hong Kong, Singapore, Australia, New Zealand, Chinese Taiwan and Japan. The SAR, with its overall score well above the world and regional averages, is classified as “mostly free”.

According to the Heritage Foundation, a higher level of economic freedom is not only associated with a higher level of per capita income but also promotes economic and social progress.