Hong Kong is Number 1 in world economic freedom rankings

Singapore ranks second place.

The "Economic Freedom of the World" report 2013 compiled by Canada's Fraser Institute, ranks Hong Kong first with an overall Economic Freedom Rating of 8.97. Behind Hong Kong was Singapore at 8.73. In the area of credit market regulations, both the East Asian City States scored 10 out of 10.

The index published in the report was compiled using data and surveys from the World Bank, International Monetary Fund and the World Economic Forum.

It measures the degree to which the policies and institutions of countries are supportive of economic freedom. The cornerstones of economic freedom are personal choice, voluntary exchange, freedom to compete, and security of privately owned property.

The degree of economic freedom to rank countries was measured using five criteria: Size of Government, Legal System and Property Rights, Sound Money, Freedom to Trade Internationally, and Regulation.

The United States is now the world's 17th freest economy behind New Zealand, Switzerland, the United Arab Emirates, Mauritius, Finland, Bahrain, Canada, and Australia, all of which are in the top 10.

Throughout most of the period from 1980 to 2000, the United States was the world's third-freest economy but still behind Hong Kong and Singapore.