Israel ranked 43rd in the 2010 Index of economic freedom

Israel is ranked 5th out of 17 countries in the Middle East/North Africa region. The country came in 42nd last year, but its score actually improved since, to 68.5 points from 67.7
 
The 2010 Index of Economic Freedomput together by the U.S.-based Heritage Foundation and The Wall Street Journalranks Israel this year in the 43rd position. The 2010 Index covers 183 countries around the world, ranking 179 of them with an economic freedom score based on ten measures of economic openness, regulatory efficiency, the rule of law, and competitiveness.
 
The basic principles of economic freedom emphasized in theIndex are individual empowerment, equitable treatment, and the promotion of competition.
 
Israel’s economic freedom score is 68.5, making its economy the 43rd freest in the 2011 Index. Its overall score has increased by 0.8 point, primarily because of improvements in fiscal freedom and government spending. Israel is ranked 5th out of 17 countries in the Middle East/North Africa region. The country came in 42nd last year, but its score actually improved since, to 68.5 points from 67.7, higher than the 59.7 world average.
 
Israel did better in part due to improvements in government budgeting and spending. The Heritage Foundation ranked Jordan at #38, with 68.9 points. Both Jordan's and Israel's rankings are considered average and indicate "moderate freedom." Qatar, Cyprus, and Bahrain are all ranked "freer" than Israel.
 
Despite the challenging global economic environment, Israel’s economy has been on a path of well-balanced recovery. With an increasingly diversified productive base and ongoing structural reforms, growth has been close to 4% annually over the past five years. Israel’s economic competitiveness is anchored in strong protection of property rights and relatively low levels of corruption and is facilitated by openness to global trade and investment.
 
Israel became a member of the Organisation for Economic Co-operation and Development in 2010. Hong Kong maintains its position as the world’s freest economy, a distinction it has enjoyed for 16 consecutive years. Singapore remains close, ranked as the world’s second freest economy.
 
Australia and New Zealand, ranked 3rd and 4th this year, have solidified their position at the top of the rankings. China, which many economic analysts believe is on track to become the world's biggest economy, was ranked #135 out of the #183 nations covered by the survey.