OREANDA-NEWS. January 22, 2010. Its score has decreased by 1.2 points since the last year, reflecting lower scores in five of the 10 economic freedoms. Moldova ranks 40th among 43 countries in the Europe region and its overall score is below the world and regional averages.

Moldova scores just above the world average in trade freedom, business freedom, and fiscal freedom and has achieved relatively steady economic growth of 5 percent over the past three years. For comparison, in 2008, Moldova ranked 89th and in 2007 - 81. In 2009, Moldova was ahead of Burkina Faso, Nicaragua, Honduras and Vanuatu. Romania ranks 63, placed among the countries with moderately free economy. Russia ranks 143, closing the group of the countries with mostly unfree economies, including Moldova.

Ukraine fell to 162 place, the index of economic freedom has decreased by 2.5 points as compared with the previous year. The country with the freest economy is Hong Kong, followed by Singapore and Australia. USA ranks 8th, the United Kingdom - 11, Germany – 23 and China - 140. Rating of economic freedom is closed by Cuba (177), Zimbabwe (178) and North Korea (179).

In recent years, the government has implemented measures to improve regulatory transparency and the overall entrepreneurial environment. Recent tax reforms have made the country’s tax regime quite competitive. Overall economic freedom remains constrained by a number of institutional shortcomings that impede economic dynamism within the private sector. Monetary stability, investment freedom, and freedom from corruption are weak.

Foreign investment faces hurdles that range from bureaucratic inefficiency to outright restriction. There is significant corruption in most areas of the bureaucracy. Political instability has left fiscal policy fragmented. Strains on the budget are mounting.