South Africa falls to 87th in global economic freedom ranking

South Africa has fallen to 87th place out of 165 countries and territories in the Economic Freedom of the World: 2026 Annual Report (EFW). This represents a decline from its previous ranking of 83rd. The report was released by the Free Market Foundation (FMF) in collaboration with Canada’s Fraser Institute.

With an absolute score of 6.63 out of 10, the data indicates a downward trend in economic freedom for South Africa since its peak in 2000. The EFW index evaluates five key areas: Size of Government, Legal System and Property Rights, Sound Money, Freedom to Trade Internationally, and Regulation. While Sound Money has remained relatively stable compared to 25 years ago, other areas have declined.

Structural weaknesses cited in the report include heavy regulation, particularly in the labor market, and excessive government spending, which exceeds one-third of the total GDP and consistently surpasses tax revenues. Experts suggest that without liberalization, secure property rights, and reduced government overreach, the country may continue to face slow economic growth.