Kyrgyzstan rises in the economic freedom ranking

According to The Heritage Foundation, the Kyrgyz Republic’s economic freedom score is 62.9, making its economy the 81st freest out of 180 countries in the 2020 Index.

Its overall score has increased by 0.6 point, with increases in the three rule-of-law indicators (property rights, judicial effectiveness, and government integrity) offsetting a drop in the fiscal health score. The Kyrgyz Republic is ranked 16th among 42 countries in the Asia–Pacific region, and its overall score is slightly above the regional and world averages.

The economy of the Kyrgyz Republic has been ranked among the moderately free for the past four years. GDP growth during that time has been solid, thanks to gold exports and robust household spending (boosted by remittance inflows from Russia and Kazakhstan); robust wage growth; and a slowdown in inflation.

Advancements in economic freedom are being blocked by ongoing and endemic corruption, weak protection of property rights, and excessive government spending that crowds out private-sector activity.

The Index of Economic Freedom is based on 12 indicators:

1. Property rights - 53.6

2. Judicial effectiveness - 31.3

3. Government integrity - 32

4. Tax burden - 94.1

5. Government spending - 58.5

6. Fiscal health - 66.7

7. Business freedom - 73.6

8. Labor freedom - 79.6

9. Monetary freedom - 76.4

10. Trade Freedom - 79.2

11. Investment freedom - 60

12. Financial freedom - 50

Source: https://www.heritage.org/index/country/kyrgyzrepublic