Hong Kong came first out of 165 jurisdictions in the Fraser Institute’s Economic Freedom of the World 2026 Annual Report, released October 6. Switzerland and Singapore followed.
The Canadian think tank scores economies in five areas. Hong Kong kept the top spot in “freedom to trade internationally” and placed second in “regulation.”
The Hong Kong government welcomed the result. A spokesman said the city “remains firmly committed to maintaining its free port status, zero-tariff policy, and simple and low tax regime” at a time of rising trade protectionism. He pointed to common law practised in both Chinese and English, plus an efficient government and a clean, professional civil service. In his words, those strengths let Hong Kong act as a “super connector and super value-adder” between mainland enterprises and overseas markets.
What business and academic voices said
The Chinese General Chamber of Commerce in Hong Kong called the ranking especially significant for local business and said it should lift confidence among enterprises and investors at home and abroad. It added that it will keep working to align the city’s first five-year plan with national strategies and chase opportunities such as the Northern Metropolis.
Billy Mak Sui-choi, an associate professor at Hong Kong Baptist University, said Hong Kong’s rules and tax system have stayed consistent over time. “As a free port, the city conducts no customs tariffs and allows for free currency exchange,” he said, adding that its position “should not be replaced by other places any time soon.”
Edward Chen Kwan-yiu, an honorary professor at HKU Business School, said the city deserved the ranking. He described Hong Kong as “a very good intermediary” with no capital controls and a free flow of information, capital and talent.
The numbers behind it
Invest Hong Kong, the government’s investment promotion agency, helped 520 mainland and overseas companies set up or expand in the city in the first eight months of the year. Between the end of 2022 and August, more than 310,000 people arrived under various talent admission schemes.
