Ecuador is #115

Ecuador is #115 in Economic Freedom out of 176 Countries.

Every year the Heritage Foundation, a leading U.S. nonprofit, produces the Index of Economic Freedom Report and ranks how free and open each country’s economy is.

With a score of 55, Ecuador is classified as:

When it’s about soccer, every Ecuadorian desperately wants to be #1. We need that passion where it really counts:

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Evidence clearly shows that greater economic freedom leads to higher standards of living, increased job creation, improved education and healthcare, greater prosperity, and enhanced environmental stewardship.

More About Economic Freedom

What Does Being “Mostly Unfree” Mean for Ecuador?

Ecuador’s classification as "Mostly Unfree" on the Index of Economic Freedom suggests notable government restrictions and limited economic opportunities, which hamper financial growth and stability. For the average Ecuadorian, this translates to fewer job opportunities, constrained investment options, and bureaucratic challenges that create obstacles to entrepreneurship and personal financial progress.

What categories doES Equador DO well in?

To do well ("mostly free") a country must score 70 - 79.9. To classify as excellent ("free") a country must score 80 or higher. Ecuador scores relatively well in these areas (scores out of 100):

Fiscal Health 79.9
Monetary Freedom 75.3
Tax Burden 74.7

Reflects a generally open market environment that supports business activities and economic stability.

Solutions

Ecuador's worst 3 categories:

Investment Freedom 30.0
Property Rights 32.9
Government 34.9

Investment Freedom in Ecuador, scoring 30.0 out of 100, reflects significant barriers to both domestic and foreign investments. This low score means that Ecuadorians face limited access to investment capital, reduced business growth, and fewer employment prospects. To improve this category, Ecuador could focus on simplifying investment regulations, promoting clearer policies to attract foreign investors, and reducing bureaucratic barriers to encourage more robust economic participation.

Property Rights in Ecuador score 32.9 out of 100, pointing to weak protection of ownership and challenges in securing property investments. For citizens, this means limited confidence in securing and developing property, making wealth-building through real estate and other property-related investments less viable. Strengthening property rights would require legal reforms to enhance ownership protections, more efficient property registration systems, and a judicial system that effectively supports property disputes.

Ecuador’s Government Integrity scores 34.9 out of 100, highlighting ongoing issues with corruption and transparency in public administration. For the average citizen, this score suggests distrust in government institutions and potential misuse of public resources, which limits effective public services and diminishes civic trust. Improving government integrity would involve implementing stricter anti-corruption measures, enhancing transparency in government operations, and ensuring accountability mechanisms are in place to build public trust.

Ecuador's Economic Freedom over time:

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