A study released this week by the influential American financial newspaper The Wall Street Journal and the American Conservative Heritage Foundation, this week ranked Malta’s level of economic freedom in 47th place out of 179 countries under the microscope, climbing three places from last year’s 50th ranking.

The 2013 Index of Economic Freedom, published annually by The Wall Street Journal and The Heritage Foundation this week gave Malta and economic freedom score of 67.5 points, making its economy the 47th freest in the 2013 Index.

Launched in 1995, the index evaluates countries in four broad areas of economic freedom: rule of law; regulatory efficiency; limited government, and open markets.

The report notes, “Significant improvements in investment freedom, labour freedom, and property rights outweighing declines in business freedom and fiscal freedom”.

In European terms, Malta ranks 23rd out of 43 countries in the Europe region, and its overall score is above the regional average.

“Malta has continued to perform well since 2010, despite considerable economic and financial turbulence in the region,” the report found. 

“Openness to global trade and investment has contributed strongly to restoring economic growth. Malta has taken steps to enhance the competitiveness and soundness of a financial sector that is now about eight times the size of the economy. The banking sector has weathered the European sovereign debt turmoil relatively well with no need for capital injections.

“Despite progress made in recent years, the foundations of economic freedom are only average by European standards, undermining prospects for more dynamic long-term economic expansion. The court system, while transparent and relatively free of corruption, remains inefficient. The government continues to intrude excessively into economic activity, imposing heavy tax burdens and maintaining high levels of spending.”