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Hong Kong has been ranked the world's freest economy by the Heritage Foundation for the 17th consecutive year since the Index of Economic Freedom was first published in 1995.
Welcoming the Heritage Foundation's high regards of Hong Kong, a government spokesman said today (January 12): ˇ§We are determined to uphold economic freedom in Hong Kong, which is the cornerstone of sustained economic stability, growth and prosperity.
"We see the role of the Government as that of a market facilitator to provide a business-friendly environment where all firms can compete on a level-playing field.
"We establish an appropriate regulatory regime to ensure the integrity and smooth functioning of a free market.
"The Government's strategy is to remove impediments to industries tapping into new markets. We will adhere to the principle of 'Big Market, Small Government'," the spokesman added.
According to the 2011 Index of Economic Freedom released today, Hong Kong scores 89.7, well above the world average of 59.7.
Among the 10 economic freedom factors assessed, Hong Kong ranks first in financial freedom and trade freedom, second in investment freedom and property rights, and third in business freedom and monetary freedom.
The Heritage Foundation recognises Hong Kong's sound fiscal management, which has helped Hong Kong weather the global economic downturn.
The Heritage Foundation further complimented Hong Kong's effective legal and regulatory frameworks and openness to global commerce, qualities that strongly support entrepreneurial dynamism, while the city's overall macroeconomic stability minimised uncertainty. Moreover, Hong Kong has maintained its status as Asia's second-largest destination for foreign direct investment, trailing only Mainland China.
The think tank also noted that Hong Kong's economic interaction with Mainland China has become more intense and sophisticated, chiefly through strengthened financial linkages.
The study measures the degree of economic freedom of 179 economies around the world. The 10 factors assessed are: business freedom, trade freedom, fiscal freedom, government spending, monetary freedom, investment freedom, financial freedom, property rights, freedom from corruption and labour freedom.
Hong Kong retains the position as the freest economy, while Singapore and Australia remain second and third respectively as compared with the 2010 index.
Of the other economies in Greater China, the Mainland ranks 135th (up five places when compared with the 2010 index), Macau ranks 19th (up one place) and Taiwan ranks 25th (up two places).
Ends/Wednesday, January 12, 2011
Issued at HKT 12:13
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