Venezuela Is #174

Venezuela is #174 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 28.1, Venezuela is classified as "Repressed":

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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 “Repressed” Mean for Venezuela?

Venezuela’s "Repressed" classification on the Index of Economic Freedom underscores an economy with severe government intervention, lack of individual liberties, and widespread institutional breakdown. For the average Venezuelan, this means extremely limited economic opportunities, a lack of security for personal and business assets, and extreme inflation, leading to day-to-day hardships in securing basic needs and financial stability.

What categories doES Venezuela 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. Venezuela scores relatively well in these areas (scores out of 100):

Tax Burden 75.9
Government Spending 96.6

Solutions

Venezuela's worst 3 categories:

Property Rights 0.0
Monetary Freedom 0.0
Investment Freedom 0.0

The category of Property Rights scores a devastating 0 out of 100, signaling a complete absence of secure property ownership and legal protections. For Venezuelans, this means individuals and businesses have no assurance that they can retain or profit from their property, severely restricting personal wealth-building and business investments. Addressing this would require fundamental legal reforms, establishing an independent judiciary, and ensuring that property ownership rights are protected by law and not subject to arbitrary seizure.

Monetary Freedom also scores 0 out of 100, reflecting severe hyperinflation and complete instability in currency value. This score affects citizens directly as the national currency rapidly loses value, making it nearly impossible to maintain purchasing power, save, or plan financially. Restoring monetary freedom would demand comprehensive economic reform, including stabilizing the currency, curbing inflation through sound fiscal policies, and restoring independence to the central bank.

Investment Freedom, too, is scored at 0 out of 100, indicating that the government heavily restricts both domestic and foreign investments, deterring potential economic growth and limiting job creation. For Venezuelans, this results in an economy with minimal private sector involvement and limited employment opportunities. Improving this would require reducing government control, creating clear and fair investment policies, and promoting an environment where both domestic and foreign investors feel secure and incentivized to contribute to economic recovery.

Venezuela's Economic Freedom over time:

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