Hong Kong has held on to the top spot as the world’s freest economy in the Fraser Institute’s Economic Freedom of the World 2025 Annual Report.
The report scores places on five areas. Hong Kong came first in “Freedom to trade internationally” and third in both “Sound money” and “Regulation.”
The Hong Kong Special Administrative Region Government answered with a statement. It said the result confirms the city’s strengths as a free-market economy, with an open and efficient business climate and a level playing field for firms.
Free port, low taxes
The statement tied the ranking to a broader argument. Geopolitical tensions are rising, it said, and so are unilateralism and protectionism, which disrupt international trade and the global economic order. Hong Kong, in its words, will “as always” stand by its status as a free port.
The government promised to keep its free trade policies and a simple, low tax regime. Capital, information, goods and talent will keep moving freely, it said, in keeping with the city’s role as a “super connector” and “super value-adder.” Companies and professionals from Hong Kong and overseas were invited to invest and build careers there.
It also pointed to uncertainty in the world economy caused by unilateral tariffs since the start of the year. China’s commitment to high-level two-way opening, together with steady advances in technological innovation, has given regional and global economies stability and momentum, the statement said.
What the government cited as evidence
Under “one country, two systems,” Hong Kong keeps its edge in connectivity, internationalization, diversity and inclusiveness, according to the statement. Stable, predictable economic and financial policies add to that pull for investors, firms and talent from abroad.
The government listed three signs of investor confidence: a strong stock market, bank deposits that keep growing, and an expanding asset and wealth management sector. It added that the city continues to do well in global competitiveness rankings for finance, innovation and technology, and education and talent.
Plans and the security law
Looking forward, the government said Hong Kong will fit itself into the national development plan and align with national strategies, while holding to a free, open and fair business environment. It plans to build up emerging industries, add new sectors, and deepen ties with established markets as well as the Global South.
The 2025 report also refers to Hong Kong’s national security laws. On that point the statement said the government protects residents’ rights and freedoms in strict accordance with the Constitution of the People’s Republic of China and the Basic Law.
