Nepal has slipped one position to 90th among 165 countries in the Economic Freedom of the World 2026 report published by Canada-based Fraser Institute in collaboration with Samriddhi Foundation. Nepal scored 6.59 out of 10, while the report is based on data through 2024.

Nepal made significant progress in the area of freedom to trade internationally, improving its ranking from 126th to 117th. Its score in this category also increased from 6.21 to 6.39. However, Nepal’s rankings declined in the other four major areas measured by the index.

In terms of the size of government, Nepal fell from 49th to 51st, while its score declined from 7.29 to 7.25. In legal system and property rights, Nepal dropped from 91st to 96th, with its score falling from 4.92 to 4.82. In sound money, the country’s score improved from 7.37 to 7.57, although its ranking declined from 96th to 101st. In regulation, Nepal dropped from 37th to 50th, while its score decreased from 7.12 to 6.90.

Despite the decline in its overall ranking, Nepal’s economic freedom score has recovered to its pre-pandemic level. Nepal scored 6.52 and ranked 98th in 2019 before falling to 6.31 and 100th place in 2020. The score has improved since then. Among the 24 sub-components across the five major areas, Nepal improved in seven, declined in six, and remained unchanged in 11.

Hong Kong ranked first globally, followed by Switzerland, Singapore, New Zealand, and the United States. India ranked 88th, China 110th, and Russia 143rd. Germany ranked 19th, Japan 13th, and France 39th. Venezuela ranked last, while Sudan, Zimbabwe, Libya, Myanmar, and Iran were also among the countries with the lowest levels of economic freedom.

The report also highlights a strong relationship between economic freedom and living standards. In 2024, countries in the top 25% for economic freedom recorded average per capita income of USD 65,596, compared with USD 9,552 among countries in the bottom 25%. Average life expectancy was also higher in the top group at 80.7 years, compared with 67.1 years in the bottom group.