Hong Kong Retains Top Spot as World's Freest Economy in Fraser Institute Report

Hong Kong has once again been rated 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 secured the top position among 165 jurisdictions worldwide, with Switzerland placing second. The Hong Kong Special Administrative Region (HKSAR) Government welcomed the report, highlighting that among the five areas of assessment, Hong Kong continued to rank first globally in "Freedom to trade internationally" and second in "Regulation."

This latest recognition matters because it underscores Hong Kong's enduring appeal as a global business and investment hub at a time of rising trade protectionism and economic uncertainty. As noted in the announcement covered by Media OutReach Newswire, the Fraser Institute's report affirms Hong Kong's strengths as a free-market economy and its open, efficient and fair business environment. A spokesman for the HKSAR Government said, "Amid increasing global economic uncertainties and rising trade protectionism, Hong Kong remains firmly committed to maintaining its free port status, zero-tariff policy, and simple and low tax regime, providing a secure, stable, fair, predictable and internationalised business and investment environment for investors and entrepreneurs from around the world."

The implications of this ranking extend beyond prestige. Hong Kong's continued top position signals to international investors that the city remains a reliable and competitive destination for capital, talent and enterprise. 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 emphasized that Hong Kong offers convenient access to both the Chinese Mainland and international markets, practices common law in both Chinese and English, and provides financial, shipping, trading and professional services aligned with international best standards. These attributes enable Hong Kong to function 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.

Hong Kong's attractiveness is also reflected in tangible results. 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), established in 2022, has successfully attracted over 120 strategic enterprises to date, including many global industry leaders with a market capitalisation or valuation exceeding $100 billion and possessing cutting-edge technologies. On talent attraction, from end-2022 to August this year, over 670,000 applications were received and over 470,000 were approved under various talent admission schemes, with more than 310,000 individuals having arrived in Hong Kong. These figures demonstrate that businesses and professionals continue to choose Hong Kong as a base for growth.

Looking ahead, the HKSAR's Chief Executive, John Lee, last month announced the First Five-Year Plan for Economic and Social Development of the Hong Kong Special Administrative Region (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, all of which are core strengths under "one country, two systems." The spokesman added that 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. For more information about Hong Kong's advantages, visit https://www.brandhk.gov.hk/.