NepalNepal Drops in Economic Freedom
Nepal ranks 90th out of 165 countries, down from 89th last year, according to the Economic Freedom of the World: 2026 Annual Report. The country scored 6.59 out of 10, a slight increase from 6.58 in 2025.
Global Newsflix 2 min read
Nepal has dropped one place in the Economic Freedom of the World: 2026 Annual Report, released by the Prosperity Foundation in collaboration with Canada’s Fraser Institute. The country now ranks 90th out of 165 countries, down from 89th last year.
The report shows that Nepal scored 6.59 out of 10, up slightly from 6.58 in 2025. The country’s score has fully recovered from the Covid-19 dip, when it fell from 6.52 in 2019 to 6.31 in 2020.
Nepal’s rankings on the report’s five main indicators were mixed. The country fell from 49th to 51st in terms of size of government, and from 91st to 96th in legal system and property rights.
However, Nepal improved on freedom to trade internationally, rising from 126th to 117th. The country also saw an increase in its score for sound money, from 7.37 to 7.57, although its ranking slipped from 96th to 101st.
Of the 24 sub-indicators, Nepal improved on seven, declined on six, and held steady on 11. Hong Kong ranks first globally, followed by Switzerland, Singapore, and New Zealand.
The report also ranks other countries, with Japan at 13th, Germany at 19th, France at 39th, India at 88th, China at 110th, and Russia at 143rd. Venezuela ranks last.
The Prosperity Foundation has released the report for the 19th consecutive year, providing insights into the economic freedom of countries around the world.
Key facts
- Nepal ranks 90th out of 165 countries in economic freedom
- The country scored 6.59 out of 10, a slight increase from 6.58 in 2025
- Nepal improved on freedom to trade internationally, rising from 126th to 117th
- The country fell from 49th to 51st in terms of size of government
Three perspectives
Neutral
The report provides a balanced view of Nepal's economic freedom, highlighting both improvements and declines. The country's score has recovered from the Covid-19 dip, but its ranking has slipped. The report's findings will be closely watched by policymakers and economists.
Positive
Nepal's improvement on freedom to trade internationally is a positive sign, indicating increased economic opportunities for the country. The report's findings also suggest that the country has made progress in recovering from the Covid-19 pandemic.
Negative
The report's findings also highlight areas where Nepal needs to improve, including its legal system and property rights. The country's decline in ranking is a concern, and policymakers will need to address these issues to promote economic growth.
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