For a family in Hong Kong’s Kowloon district, the news that their city has once again been ranked the world’s freest economy is more than a statistic—it is a sign of stability returning to their daily lives. The father, a small business owner who imports specialty teas, says the consistent recognition of Hong Kong’s “Freedom to Trade Internationally” has allowed him to expand his supply lines without fear of sudden tariffs or bureaucratic hurdles. This personal story echoes a broader reality: the Hong Kong Special Administrative Region government on Thursday welcomed the Fraser Institute’s Economic Freedom of the World 2022 Annual Report, which named the territory the world’s freest economy for another year.
A Business Environment Restored
According to a government statement issued Thursday night, the Fraser Institute assessed Hong Kong across five key areas: regulation, freedom to trade internationally, size of government, sound legal system and property rights, and government spending and taxation. The territory ranked top in “Freedom to Trade Internationally” and “Regulation.” An HKSAR government spokesman credited the city’s resilience: “We have been striving to improve the business environment and enhance market efficiency and support. Thereby allowing the economy to display flexibility and resilience and leverage the advantages of the free market.” He added, “Our commitment to maintaining an efficient, free, open, and fair business environment is once again affirmed.”
The spokesman directly linked this economic freedom to the implementation of the National Security Law, which he said has “swiftly and effectively restored stability and security in the society of Hong Kong.” He noted that after more than two years of the law’s enforcement, “the prestigious business environment has returned.” Concrete figures back this claim: at the end of 2021, the value of Hong Kong’s asset and wealth management business reached HK$35.5 trillion (US$4.52 trillion), an increase of more than 20 percent compared to the end of 2019. The deposits in the banking system stood at more than HK$15 trillion in July 2022, 8.5 percent higher than prior to the law’s implementation in June 2020.
Financial Hub Status Reaffirmed
The spokesman highlighted that in the latest Global Financial Centres Index, published in March of this year, Hong Kong’s status as a leading global financial center was reaffirmed, ranking first in Asia and third in the world. He also referenced President Xi’s address on July 1, in which the president “recognized the unique strength of Hong Kong’s common law system and indicated that the autonomy bestowed by the law is fully respected and resolutely safeguarded by the central government.” The HKSAR government remains fully committed to upholding Hong Kong’s fine tradition of the rule of law and judicial independence, the spokesman added.
For residents and businesses alike, the practical impact is tangible. The small tea importer, for instance, now works in an environment where property rights are secure and regulations are clear, allowing him to plan for the next decade. The community around him—from shopkeepers to bankers—benefits from a system that the Fraser Institute ranks as the freest in the world.
What to Watch Next
Looking ahead, the key question is whether Hong Kong can maintain its top ranking in future Fraser Institute reports, especially as global economic conditions shift. The government has signaled it will continue to focus on improving the business environment and enhancing market efficiency. Observers will be watching for updates to the Global Financial Centres Index and any new data on asset management and banking deposits to see if the trend of growth continues. For the families and entrepreneurs of Hong Kong, the answer will be measured not just in rankings, but in the everyday freedom to trade, invest, and build a future.
