According to the most current rankings compiled by a Canadian think tank, Hong Kong’s half-century reign as the world’s freest economy has come to an end, citing deteriorating judicial independence as one reason.
For the first time since the index’s inception in 1970, the Asian financial hub slid to second place.
The Fraser Institute analysis, which was released on Tuesday, is based on data from 2021, and the organisation predicts that the city’s rating will decline even further in the next few years.
“Hong Kong’s recent turn is an example of how economic freedom is intimately connected with civil and political freedom,” said Matthew Mitchell, senior fellow at the Fraser Institute, in a press release.
Singapore took first place over Hong Kong, with Switzerland, New Zealand, and the United States rounding out the top five.