Hong Kong is world's freest economy

Hong Kong is the world's freest economy followed by Singapore and Australia according to a survey by the Heritage Foundation and the Wall Street Journal. From Business Week:

The study said the rankings were based on a simple average of 10 factors, including property rights, investment freedom and financial freedoms. Hong Kong placed first in those categories.

But the city didn't do as well as Singapore in labor freedom and in the ease of starting businesses. Hong Kong was also seen as less free from corruption concerns, compared to Singapore.

Hong Kong's Financial Secretary Henry Tang said, "We will study the report carefully and will strive to preserve fervently those strong aspects of our economic freedom."

The report said Singapore will only be able to challenge Hong Kong if it improves its financial freedom.

"(Singapore) has to make significant changes to its financial freedom, as well as ownership control over banks," Feulner said.