Azerbaijan has moved up one position in the 2018 Economic Freedom Index, ranking 67th out of 180 countries. According to the report prepared by the Heritage Foundation, the country’s progress reflects a decade of consistent economic reforms, which have enabled Azerbaijan to outperform both regional and global averages. Notably, Azerbaijan ranks 14th among 43 countries in the Asia-Pacific region and stands ahead of several developed nations, including France, Italy, and Greece. The report also notes that Azerbaijan has surpassed several CIS countries, including Russia.

Ayaz Chaparly, head of the Economic Reforms Analysis and Communication Center (CAERC), emphasizes that Azerbaijan’s strengthened position across multiple international rankings—including the Inclusive Development Index 2018, Doing Business 2018, and the Global Competitiveness Index—reflects the government’s targeted and deep economic reforms under President Ilham Aliyev.

The Economic Freedom Index is composed of four main indicators with 12 sub-indicators: Rule of Law, Government Size, Regulatory Efficiency, and Open Markets. Sub-indicators include property rights, government integrity, judicial effectiveness, government spending, tax burden, fiscal health, business freedom, labor freedom, monetary freedom, trade freedom, investment freedom, and financial freedom. Each sub-indicator carries equal weight in the overall ranking.

Azerbaijan has recorded improvements in all three sub-indicators of the Rule of Law, contributing significantly to its rise in the Economic Freedom Index. Progress is also observed across other areas: government spending accounts for 36.8% of GDP over the last three years, while the overall tax burden has decreased to 15% of total revenue. Fiscal health remains strong, exceeding the global average at 95.5%.

These achievements build on strategic initiatives, including the July 13, 2016 Presidential Decree on improving the business environment and the Strategic Roadmaps for the National Economy and Key Sectors, which aim to enhance financial stability, foster sustainable economic growth, and strengthen Azerbaijan’s global economic standing.

Overall, Azerbaijan’s progress in the Economic Freedom Index reflects notable gains in business, labor, and financial freedom, while trade and investment freedoms have reached near-global average levels, highlighting the country’s continued commitment to structural economic reforms.