Chile: Economic freedom

Chile can proudly announce to earn the highest score in Latin America. On the internationally acknowledged Index of Economic Freedom, Chile is ranked 20th in the world in 2022, with a score of 74.4 points*. The other South American nations – already significantly behind – are Uruguay (34th), Peru (51st), Colombia (60th), Guatemala (69th), and Paraguay (73rd). The South American “giants” Brazil (133rd) and Argentina (144th) find themselves at the end of the ranking and are listed in the category of mostly unfree countries. Chile is at eye level with established economic nations from an international perspective. Germany, in 16th place with a score of 76.1 points, is only slightly ahead of Chile. The USA, the UK, Japan, and France are in some cases slightly, in others significantly behind Chile. The index is led by Singapore, Switzerland, and Ireland.

With this ranking, Chile presents itself as an outstanding emigration country from a further aspect and is regarded as the top address for people interested in South America in the current year as well. The Index of Economic Freedom has been compiled annually since 1995 by the Heritage Foundation and the Wall Street Journal. It is assumed that the index is an indicator of a country’s economic prosperity and that restrictions on freedom have a negative impact on this. The following parameters are taken into account for calculation: – Rule of Law (property rights, government integrity, judicial effectiveness) – Government Size (government spending, tax burden, fiscal health) – Regulatory Efficiency (business freedom, labour freedom, monetary freedom) – Open Markets (trade freedom, investment freedom, financial freedom). Further information on the Index of Economic Freedom as well as the current overall ranking can be found by following the link below:

*The calculation results in a total score between 0 and 100 for each country. Depending on the result, the classification is made as follows: a total score of 80-100 is defined as free, 70-79,9 as mostly free, 60-69,9 as moderately free, 50-59,9 as mostly unfree, and 0-49,9 as repressed.

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