Canada’s economic freedom ranking fell sharply – what it means for investors
“Canadians should be worried because when people are less economically free, their standards of living tend to suffer,” said Matthew Mitchell, senior fellow at the Fraser Institute and coauthor of the 2026 report.
What the global ranking reveals
Globally, Hong Kong retained top spot though its score has declined every year since 2018. Switzerland ranked second, Singapore third, New Zealand fourth, and the United States fifth. Germany, at 19th, now sits just one position below Canada. France ranked 39th, China 110th, and Russia 143rd. The 10 lowest-ranked jurisdictions included Venezuela, Zimbabwe, Sudan, and Libya.
The gap between countries at the top and bottom of the rankings carries direct implications for investors. According to data in the 2026 report, per-person GDP in the top quartile of economic freedom reached US$65,596 in 2024, compared to US$9,552 in the bottom quartile.
Extreme poverty – defined as living on less than US$4.10 per day – affected 2 per cent of people in the most-free quartile, against 41 per cent in the least-free. Life expectancy averaged 81 years in the freest countries, compared to 67 years in the least free.
The advisor conversation
For Canadian financial advisors, the nine-place decline is a concrete data point in a conversation many are already having with clients. The widening gap between Canadian and American living standards – with the average American now earning approximately CA$23,757 more per year in GDP per capita terms than the average Canadian – means that the case for international diversification is no longer merely theoretical.
