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Iraq Misses 2025 Economic Freedom Index Again: Reasons Explained

Economic Analysis – Update

Iraq remains unclassified in the Global Index for Economic Freedom for 2025, marking the second consecutive year of this status, according to recent findings from the Heritage Foundation. An expert economist attributes this situation to inadequate data regarding labor freedom, government expenditure, and financial health.

The Heritage Foundation’s report evaluates 184 countries based on their economic policies and conditions from July 2023 until June 30, 2024. Out of this group, only 176 countries received classifications. Notably, three countries achieved the highest category of economic freedom, scoring 80 points or more, while 26 countries were categorized as mostly free, scoring between 70 and 79.9 points. In addition, 58 countries were deemed somewhat free, with scores ranging from 60 to 69.9 points.

Conversely, 89 countries scored below 60 points, indicating a non-free economy; among these are China and Iran, classified under economic repression.

Eight nations, including Iraq, do not feature in the classification due to a lack of institutional data, rendering them unclassifiable based on reliable metrics.

The Economic Freedom Index analyzes 12 indicators across four principal aspects of the economic landscape, graded on a scale from 0 to 100. These aspects include: the rule of law (covering property rights, government integrity, and judicial effectiveness), the size of government (assessing government spending, tax burden, and financial health), regulatory efficiency (evaluating business, employment, and monetary freedom), and openness of markets (considering trade, investment, and financial freedom).

The report indicates that Iraq is among the eight countries globally that have not been classified for economic freedom in 2025, primarily due to the absence of reliable data. The other nations in this category are Afghanistan, Libya, Somalia, Syria, Liechtenstein, Ukraine, and Yemen.

Globally, Singapore holds the top position in the Economic Freedom Index for 2025, with a score of 84.1 points, followed by Switzerland at 83.7 points, Ireland at 83.1 points, Taiwan at 79.7 points, and New Zealand at 78.9 points.

In the Arab context, the UAE leads with 71.6 points, followed by Qatar with 70.2 points, Bahrain with 65.6 points, Oman with 65.4 points, and Saudi Arabia with 64.4 points.

Reasons for Iraq’s Exclusion from the Ranking

Economist Muhammad Al-Hassani discussed with experts that the primary cause for Iraq’s exclusion from the classification is the lack of transparency within governmental institutions. He emphasized the unavailability of accurate data concerning property rights, financial health, labor freedom, government expenditures, and monetary freedom, all crucial elements for assessing a nation’s economic freedom.

The Heritage Foundation, established in 1973 in Washington, DC, is a prominent conservative research organization recognized for its analyses and research on public policy matters, particularly in economics, defense, and foreign affairs. The Foundation advocates for principles of free markets, limited government, and traditional values.

The Foundation releases the Economic Freedom Index annually, assessing the openness of economies based on criteria such as the rule of law, size of government, regulatory efficiency, and market openness.

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