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The conservative think tank, The Heritage Foundation, in partnership with the Wall Street Journal, created an index that rates the economic freedom in 186 countries.

The index covers 10 freedoms grouped into four major categories to calculate an overall score for each country. The information considered for each factor in each country was current June 30, 2013.

We compiled the top 25 economically free countries, but if you want to investigate the data and see more countries you can go to their website here:

2014 Index of Economic Freedom

25 Japan
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Overall Score: 72.4

According to the Index, although Japan remains in the top 25 economically free countries, it's progress is suffering due to a lack of reforms.

24 Austria
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Overall Score: 72.4

According to the Index, the backbone of Austria's economy is their vibrant banking sector.

23 Iceland
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Overall Score: 72.4

According to the Index, Iceland continues to improve while serious economic barriers are slowly removed.

22 Georgia
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Overall Score: 72.6

According to the Index, Georgia has achieved a "mostly free" status.

21 Lithuania
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Overall Score: 73.0

According to the Index, Lithuania has reduced government spending to sustain momentum through the economic recovery.

20 Sweden
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Overall Score: 73.1

According to the Index, Sweden has rebounded from the global recession with openness to global trade and commerce.

19 Finland
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Overall Score: 73.4

According to the Index, Finland has trended 9.7 points higher in its overall economic freedom score.

18 Germany
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Overall Score: 73.4

According to the Index, Germany's progress has been good, but it still lacks in labor freedom.

17 Taiwan
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Overall Score: 73.9

According to the Index, Taiwan's score is 1.2 points higher than last year.

16 Luxembourg
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Overall Score: 74.2

According to the Index, openness to global trade has greatly benefited Luxembourg.

15 The Netherlands
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Overall Score: 74.2

According to the Index, the Netherlands is continually improving in the 10 key economic indicators.

14 United Kingdom
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Overall Score: 74.9

According to the Index, the U.K. has dropped three points over the history of the index and is ranked fifth in the European region.

13 Bahrain
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Overall Score: 75.1

According to the Index, Bahrain continues to be the freest country in the Middle East/Africa region.

12 United States
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Overall Score: 75.5

According to the Index, since 2006 the United States has dropped 6 points, dropping out of the top 10 most economically free counties.



"Substantial expansion in the size and scope of government, including through new and costly regulations in areas like finance and health care, has contributed significantly to the erosion of U.S. economic freedom," the index explains. "The growth of government has been accompanied by increasing cronyism that has undermined the rule of law and perceptions of fairness."

11 Estonia
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Overall Score: 75.9

According to the Index, Estonia has improved 11 points over the 20-year history of the index.

10 Denmark
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Overall Score: 76.1

According to the Index, Denmark's judicial system is a strong underpinning of their economy because it is free from corruption.

9 Ireland
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Overall Score: 76.2

According to the Index, Ireland has become the 2nd freest economy in the Europe region.

8 Mauritius
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Overall Score: 76.5

According to the Index, Mauritius is ranked the best among the 46 countries that make up the Sub-Saharan Africa region.

7 Chile
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Overall Score: 78.7

According to the Index, Chile is a leader in economic freedom, heralding such principles as limited government.

6 Canada
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Overall Score: 80.2

According to the Index, Canada is the freest economy in the North American region.

5 New Zealand
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Overall Score: 81.2

According to the Index, its score is slightly lower than last year, illustrating its decline in business and fiscal freedom.

4 Switzerland
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Overall Score: 81.6

According to the Index, Switzerland is ranked the best out of the 43 countries in the European region.

3 Australia
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Overall Score: 82.0

According to the Index, Australia has low public debt, monetary stability and a thriving employment market that all make their economy strong.

2 Singapore
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Overall Score: 89.4

According to the Index, its score is 1.4 points better than last year.

1 Hong Kong
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Overall Score: 90.1

According to the Index, Hong Kong has consecutively been the top-rated economy for the past twenty years.