For the first time in a quarter century, the United States posted its largest increase in economic freedom, a jump of nearly three points that The Heritage Foundation attributes to policies implemented by the Trump administration.
Since 1995, Heritage has published the Index of Economic Freedom, an annual report evaluating 184 countries. Heritage defines economic freedom as “the fundamental right of every human to control his or her own labor and property.”
The index measures 12 economic freedoms, which fall into four categories: rule of law, government size, regulatory efficiency, and open markets.
U.S. Gains Ground
The United States’ score rose 2.6 points, the largest increase since 2001 and the biggest improvement among advanced economies. The U.S. economic freedom score is 72.8, making it the 22nd freest country in the 2026 report.
The rise reverses a five-year decline in America’s economic freedom score, which paralleled President Joe Biden’s tenure in the White House.
“Gains in monetary freedom, government spending, fiscal health, and investment freedom have outpaced the lower score in trade freedom, reflecting the positive impact of major regulatory and tax reforms on economic growth, investment, and business confidence,” the index noted of the U.S. improvement.
‘Impressive Results’
The index’s preface attributes the United States’ “impressive results” to the Trump administration, citing a stock market near all-time highs and stable interest rates, inflation, and unemployment.
Anthony B. Kim, the index’s editor and Jay Kingham research fellow in international economic affairs, credited the economy’s improvement to President Donald Trump.
Kim told The Daily Signal that “progress is not accidental. It reflects the Trump administration’s pragmatic pro-growth economic strategy,” which he said, “has cut government jobs, slowed spending, and prioritized private-sector growth through proactive, bold deregulatory and tax reforms.”
Trump’s critics, however, said the president’s policies are restricting economic freedom.
“I fear that actions he’s taken, both in terms of tariffs and the Iran war, are going to have serious implications for our economy that I’m very worried about,” said Barry Bluestone, a professor emeritus at Northeastern University’s School of Public Policy and Urban Affairs.
Bluestone cautioned that such policies could worsen inflation over the next six to 12 months.
He claimed that Trump’s policies have largely benefited the wealthy, while many Americans are still struggling to make ends meet.
Global Highlights
Argentina was ranked the best-performing country in the 2026 index, with an increase of 3.2 points from last year.
In response to the news, Argentina President Javier Mileis aid, “I’m not saying we’re Switzerland, but we were 146th in the economic freedom ranking, and we moved up 40 places. … Imagine when all the reforms kick in.”
Javier Milei: “I’m not saying we’re Switzerland, but we were 146th in the economic freedom ranking, and we moved up 40 places… Imagine when all the reforms kick in.”
pic.twitter.com/1KhZEZEbGk— BowTiedMara (@BowTiedMara) March 10, 2026
China, meanwhile, fell 0.7 points from last year, with a score of 48.3. It is ranked 154th out of 184 countries , due to the Chinese Communist Party’s direct control over the economy.
Globally, the average nation scores “mostly unfree” at 59.9 on the index, meaning half of all countries are below the 60-point threshold.
Singapore, Switzerland, Ireland, Australia, and Taiwan rank as the world’s freest economies.