Latvia, Estonia fall on economic freedoms index

WASHINGTON -- In the latest Economic Freedoms Index, Latvia and Estonia have both seen a marked drop in their scores over previous years, while Lithuania had a slight increase.

The annual study, realesed by the Heritage Foundation in conjunction with the Wall Street Journal, measures 10 different aspects of economic freedoms and rates countries based on the combined score.

Economic freedoms are undergoing a rapid change as the Baltics struggle to cope with a worsening recession.

Estonia fared best in the latest study, with a 17th place ranking in the most recent Index -- one place above neighboring Finland. Estonia's total score was74.7 -- 1.7 points and three ranks lower than its score last year.

Lithuania earned 29th place in the Index, just ahead of Belgium. The Lithuanian score of 70.3 was 0.3 points higher than last year and earned the country an increase of one rank.

Latvia was the lowest among the Baltic states, coming in 50th -- just ahead of Hungary. Latvia received a score of 60.2 -- 0.4 points and 5 ranks lower than last year.

Hong Kong topped the list, as it has in past years. Singapore, Australia, New Zealand and Ireland rounded out the top 5.

North Korea, meanwhile, was last on the list with just one point. Zimbabwe, Cuba and Eritrea were also at the bottom of the Index.

The Estonian and Lithuanian economies are ranked as mostly free, whereas the Latvian economy as moderately free. All three countries were above the average score.