# South Africa has dropped to 87th of 165 countries in the Economic Freedom of the World: 2026 Annual Report, as inflation pressures and currency depreciation continue to worsen broader economic challenges. The Free Market Foundation and Canada’s Fraser Institute measured five areas: size of government; legal system and property rights; sound money; freedom to trade internationally; and regulation. With a score of 6.63 out of ten, the report highlights several major structural weaknesses holding South Africa back, including excessive general government spending and heavy regulation, particularly of the labour market.
South Africa drops in global economic freedom rankings