The Czech Republic is the 22nd most economically free country out of 162 countries. According to the Fraser Economic Freedom World Index.
The index has been published since 1996. This year’s figures are based on data from 2017. The delay is due to the need to wait for data from 162 countries. The index consists of five indicators relating to the size of the state sector, the rule of law, international trade, or overall regulation. Another factor is the country’s currency environment and the inflation environment.
“The relatively good positioning of the Czech Republic is a reflection of the catastrophic situation in the rest of the world, rather than the fundamental liberal progress of the Czech economy. ČTK Chief Economist of the Natland Investment Group Petr Bartoň.
While the Czech Republic ranks 18th in overall regulation and 23rd in foreign trade, the Czech Republic ranked 71st in the size of the government, last year it was 66th.
“Here, I see the greatest room for improvement. For example, because we are at the peak of the business cycle, and in the event of a downturn in economic activity, the size of the government always increases,” Bartoň said.
He added that the Fraser Institute index is only one of the two leading indices. “Unlike its competitor from the Heritage Foundation, however, Fraser does not include corruption data in the index. It would also make it worse for us. Its impact on economic freedom is even more dangerous than the size of the government sector itself,” he added.