Taiwan has placed 4th in the 2025 Index of Economic Freedom, released by the U.S.-headquartered think tank the Heritage Foundation this Monday. Of 184 economies, Taiwan has received 4th place for the third consecutive year.
With a total average score of 79.7, Taiwan ranks behind Singapore, Switzerland, and Ireland, and ahead of Australia, New Zealand, South Korea, the U.S., Japan, the U.K., China, and other economies. Taiwan’s 2025 score is 0.3 points lower than its 2024 score of 80.0, edging it out of the think tank’s “free” category and into “mostly free.”
The Index of Economic Freedom bases scores on 12 indicators the Heritage Foundation calls “economic freedoms,” among them tax burden, government spending, fiscal health, property rights, trade freedom, and investment freedom. Taiwan’s highest score was 94.4 in the judicial effectiveness category, and the lowest was 60.0 in financial freedom.
The National Development Council (NDC) made a statement about the results in a press release, noting that Taiwanese enterprises have faced unprecedented challenges in ever-changing times. They said that beyond companies needing to upgrade technology, they also need to simultaneously work towards multiple goals, including digital transformation, resilience strategies, and sustainable development. The council added that the government will assist enterprises to ensure Taiwan’s international economic competitiveness.
The NDC also noted several legal reforms that likely had an impact on Taiwan’s economic freedom, including those that promote the popularization and legal effectiveness of electronic signatures, streamline trademark registration and management, encourage the safe use of AI in the financial sector, and more.