Nepal has dropped one position to 90th among 165 countries in the 2026 Economic Freedom of the World report, despite a slight improvement in its overall score.
According to the report, Nepal scored 6.59 out of 10, up from 6.58 in the previous year. However, its ranking declined from 89th to 90th due to the comparative performance of other countries.
The report assesses economic freedom across five areas: size of government, legal systems and property rights, sound money, freedom of international trade, and regulation, using 46 indicators and sub-indicators.
Nepal performed weakest in legal systems and property rights, scoring 4.82 and ranking 96th. The category evaluates judicial independence, property rights, contract enforcement, the integrity of the legal system and the effectiveness of policing.
The country also performed poorly in international trade freedom, scoring 6.39 and ranking 117th. The assessment covers tariffs, trade barriers, customs procedures, foreign exchange markets and restrictions on capital movement.
In contrast, Nepal ranked 50th in regulation with a score of 6.90, while it placed 51st in the size of government category with 7.25 points.
Under the sound money category, Nepal scored 7.57 and ranked 101st. This area assesses monetary stability, inflation, money supply growth and access to foreign currency accounts.
Globally, Hong Kong topped the index with a score of 8.53, followed by Switzerland at 8.45, Singapore at 8.43, New Zealand at 8.38 and the United States at 8.21.
