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Iran Ranks 169th in Global 'Economic Freedom'; Falls to the Bottom of Middle Eastern Countries

Feb 7, 2026 February 7, 2026 2 min read 📰 VOA Persian
📋 Key Takeaway

Iran's economic freedom score has dropped to 42.2, ranking it 169th globally and last in the Middle East. This decline is attributed to government intervention, corruption, and a weak rule of law. The report suggests that current negotiations could potentially improve Iran's economic situation.

🔍 Quick Context Guide
💡 Bottom Line: Iran's low economic freedom ranking underscores significant internal challenges that could impact its future economic and political stability.

👥 Key Players

Ebrahim Raisi MENTIONED
President of Iran
"As the current president, Raisi's policies and governance directly impact Iran's economic conditions and international negotiations."
Heritage Foundation MENTIONED
Research organization
"Their economic freedom index provides a widely referenced assessment of countries' economic policies and conditions."

📰 What Happened

Iran's economic freedom score has dropped to 42.2, ranking it 169th globally and last in the Middle East. This decline is attributed to factors such as government intervention, corruption, and a weak rule of law.

  • Iran is now ranked 14th out of 14 countries in the Middle East and North Africa for economic freedom.
  • The report indicates that the current economic situation is worse under President Raisi compared to previous administrations.

💡 Why It Matters

🇮🇷 For Iran: This ranking highlights the severe economic challenges Iran faces, which could lead to increased public discontent and instability.
🌍 Regional: The decline in Iran's economic freedom may affect regional economic dynamics, particularly in oil markets and trade relations.
🌐 International: International stakeholders, especially those involved in negotiations with Iran, may see this as a critical factor in determining the country's economic viability and compliance with agreements.

📚 Background

Economic freedom refers to the ability of individuals to control their own economic resources, and Iran's low score indicates heavy government control and corruption.

Iran's economic sanctions Impact of oil prices on Iran's economy
📡 Source: NEUTRAL
📊 Confidence: 70%
The Heritage Foundation is considered a reputable source for economic analysis, but its assessments may reflect specific ideological perspectives.

Iran's 'Economic Freedom Score' for the year 2023 is estimated at 42.2, placing its economy at 169th in the world and 14th among 14 countries in the Middle East and North Africa. According to a report by the 'Heritage Foundation' website, factors such as government intervention have weakened most of the measured indicators. Other indicators contributing to Iran's free fall in economic freedom include corruption and the rule of law deficiencies. The 'command and oil-dependent economy' alongside 'tightening the operational space for the private sector' are also mentioned as influential factors in the economic freedom index. This report states that the state of economic freedom during Ebrahim Raisi's presidency is worse than that of previous presidents and emphasizes that current negotiations could lead to an agreement allowing Tehran to expand oil exports, attract more foreign investment, and increase trade. Accordingly, it has been stated that the rule of law in Iran is weak, and the score for intellectual property rights in Iran, along with the effectiveness of the judiciary and government integrity, is below the global average. In a section analyzing the conditions of the private sector, excessive government oversight and intervention in the private sector and complex employment regulations and a stagnant labor market are also cited as factors reducing Iran's ranking. The decline in the national currency value, persistent inflation above 40% in recent years, and financial and banking restrictions are also noted in the report on Iran's economic freedom index. Overall, the criteria for this measurement include several indicators, such as: 'freedom to own property, fair laws and adjudication in economic matters, transparency in government structure, taxation, the extent of government intervention in national expenditures, government spending for public welfare, freedom to register and manage companies, protective laws for workers, freedom of capital circulation in society, and freedom in stock markets and investment.'

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Translated from the original and edited for English readers. View original source →

Translation confidence: 85%

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