Hong Kong Named World's Freest Economy in 2026 Fraser Institute Report

Hong Kong has once again been rated as the world’s freest economy, according to the Economic Freedom of the World 2026 Annual Report, published on October 6 by the Canada-based Fraser Institute. The city topped 165 jurisdictions worldwide, with Switzerland in second place. The Hong Kong Special Administrative Region (HKSAR) Government welcomed the report, noting that among the five areas of assessment, Hong Kong continued to rank first globally in “Freedom to trade internationally” and second in “Regulation”. A government spokesman said the report affirms Hong Kong’s strengths as a free-market economy and its open, efficient and fair business environment, and reaffirmed the city’s commitment to maintaining its free port status, zero-tariff policy, and simple and low tax regime.

Under the “one country, two systems” framework, Hong Kong enjoys strong support from the Chinese Mainland while maintaining close connections with the rest of the world. The spokesman highlighted that Hong Kong practises common law in both Chinese and English and offers financial, shipping, trading and professional services that align with international best standards. These strengths enable Hong Kong to fully leverage its roles as a “super connector” and “super value-adder”, making it the best gateway for Mainland enterprises to enter international markets and for overseas enterprises to enter the Mainland. The city’s favourable business and living environment continues to attract global enterprises and talent. Last year, the number of companies in Hong Kong with parent companies overseas or in the Mainland exceeded 11,000, an increase of 11 per cent over 2024 and a record high. The Office for Attracting Strategic Enterprises (OASES) has attracted over 120 strategic enterprises to date. On talent attraction, from end-2022 to August this year, over 670,000 applications were received and over 470,000 approved, with more than 310,000 individuals having arrived in Hong Kong.

Looking ahead, Chief Executive John Lee last month announced Hong Kong’s First Five-Year Plan for Economic and Social Development (2026-2030) and the 2026 Policy Address. The plan states that Hong Kong will remain committed to a free and open economic system and the free flow of capital, goods, people and information. The spokesman said these efforts will inject stronger impetus into social and economic development, open up broader development prospects for local enterprises and the public, and provide greater opportunities for enterprises, investors and talent worldwide. The news was distributed via Media OutReach Newswire.