Nepal Drops One Spot to 90th in Economic Freedom Ranking

Nepal Slips One Spot to 90th in 2026 Global Economic Freedom Index

Nepal has slipped one place to 90th among 165 countries in the Economic Freedom of the World 2026 report published by Canada based Fraser Institute in collaboration with Samriddhi Foundation. Nepal scored 6.59 out of 10. The report is based on data up to 2024 and measures how well a country’s policies and institutions support economic freedom. Samriddhi Foundation has published the report in Nepal for the 19th consecutive year.

Nepal improved in freedom to trade internationally, moving to 117th from 126th, while its score increased to 6.39 from 6.21. However, Nepal’s ranking declined in the other four areas. In size of government, Nepal fell to 51st from 49th, with its score declining to 7.25 from 7.29. In legal system and property rights, it dropped to 96th from 91st, with the score falling to 4.82 from 4.92. In sound money, Nepal fell to 101st from 96th despite its score rising to 7.57 from 7.37. Similarly, in regulation, Nepal dropped to 50th from 37th, while its score declined to 6.90 from 7.12.

Despite the fall in overall ranking, Nepal’s score has recovered to its pre-pandemic level. Nepal scored 6.52 and ranked 98th in 2019, before falling to 6.31 and 100th place in 2020. The score has improved since then. Of the 24 sub-components under the five main areas, Nepal improved in seven, declined in six, while 11 remained unchanged.

Globally, Hong Kong ranked first, followed by Switzerland, Singapore, New Zealand and the United States. India ranked 88th, while China ranked 110th and Russia 143rd. Germany ranked 19th, Japan 13th and France 39th. Venezuela ranked last, with Sudan, Zimbabwe, Libya, Myanmar and Iran also among the countries with the lowest levels of economic freedom.

The report also highlights a link between economic freedom and living standards. Countries in the top 25% for economic freedom had an average per capita income of USD 65,596 in 2024, compared with USD 9,552 in countries in the bottom 25%. Average life expectancy was also higher at 80.7 years, compared with 67.1 years in the bottom group.