Argentina, among the worst in a ranking in economic freedom

According to the Index of Economic Freedom 2022, prepared annually by the Heritage Foundation, on a scale of zero to one hundred, Argentina scored 50.1 points, 2.6 points lower than the previous edition. However, he was able to climb to four spots in the ranking, from position 148 to 144, although he will soon remain in the group of most are not free to fall into the restrained.

The report, which includes 184 countries, is grouped into five bands, according to their level of economic freedom: free (scores from 80 to 100), mostly free (from 70 to 79.9), moderately free (60 to 69.9), most were not free (50 to 59.9) and suppressed (0 to 49.9).

Despite the poor position, Argentina was able this year to leave the group of detainees, located in a higher ranking, which for the most part is not free.

The seven best qualified countries, that is, those in the first group (mostly free in economic matters) are: Singapore, New Zealand, Australia, Switzerland, Ireland, Luxembourg, Taiwan and Estonia. Their scores range from over 84 to 80.

Argentina, with 50.1 points, is considered a virtually non -independent economy, and despite a loss of 2.6 points compared to last year and a step away from the fall in the group of economically repressed. Areas now occupied by countries such as: China, Cuba, Venezuela, and Pakistan, among others.

Among the group currently occupied by Argentina are countries such as El Salvador, Honduras, Nicaragua, Nigeria, Ecuador, India, Brazil, and Haiti.

Considering only 32 countries in the Americas, Argentina ranks 27th, and its overall score is below regional and world averages.

The worst local scores were on property rights (35 points) and financial freedom (37.9 points). On the handsome side, the best scores were achieved through the tax burden (over 73 points) and freedom of commerce (60.6).

Why Argentina is among the worst in the ranking

“Over the past five years, Argentina’s economy has been weakening and the biggest recession has occurred in 2020. It has broken the five-year trend of expanding economic freedom,” the ranking indicates in its recitals and added: “Na- dragged down a large decline in financial health, Argentina posted a total loss in economic freedom of 0.3 points since 2017 and dropped under the category “Mostly Unfree.” Property Rights, Health in Finance, and Financial Freedom They are particularly weak.

According to the document, the impact of Covid-19 on December 1, 2021 left a balance of 116,597 deaths, and the government’s response to the crisis is ranked 91st among the countries included in this Index in terms of strict. The economy contracted 10.0% in 2020.

From the conclusions of the ranking it can be concluded that Argentina has vast agricultural and mineral resources, and a highly educated population, “but it also has a long history of political and economic instability.” “The legislative elections of November 2021 weakened the strength of the Peronists in Congress. Ang widespread disillusion popular because of the weak economy and the ninth failure to repay the nation’s sovereign debt. To control inflation until after the election, the government has imposed price controls that are detrimental to the economy on hundreds of products. In September 2021, the Government enlisted the support of lenders to reach an agreement to resolve the default, ”he detailed.

YN