New Hampshire is once again the freest state both in the United States and on the North American continent, topping each index in this year’s Economic Freedom of North America report, released today by the Josiah Bartlett Center for Public Policy in conjunction with Canada’s Fraser Institute.
“Granite Staters continue to choose policies that empower people, not government. When you do that for a very long time, you wind up freer than your neighbors,” said Andrew Cline, president of the Josiah Bartlett Center for Public Policy, which partnered with the Fraser Institute in releasing the report. “In 2025, legislators have a tremendous opportunity to build on this success and liberate Granite Staters from some of the outdated policies that keep us from being even freer.”
Since the Fraser Institute began publishing its Economic Freedom of North America Index two decades ago, the Granite State has ranked No. 1 in 23 of the 26 years studied in the international freedom index. It has ranked No. 1 in 23 of the 42 years covered in the U.S. freedom index.
New Hampshire Gov. Chris Sununu said that notching another first place win shows that New Hampshire’s approach to governing works.
“The model we’ve set here in New Hampshire isn’t just the gold standard for the 50 states, it’s the envy of all North America! The New Hampshire Advantage is more than just a slogan — it’s proof that freedom stems from creating opportunity for the individual without big government,” Sununu said.
This year—the 20th year that the Economic Freedom of North America index has been published—New Hampshire is again the freest state among all U.S. states, having scored 8.12 out of 10 in this year’s report, which measures government spending, taxation, regulations and labor market restrictions using data from 2022, the most recent year of available comparable data.
“In the freest economies, individuals are allowed to make more of their own economic choices—choices concerning work, transactions with others, and owning and using productive property. As government limits these choices, people have less economic freedom and as a result they tend to be worse off,” said Matthew Mitchell, a senior fellow at the Fraser Institute and co-author of the report.
Rounding out the top five freest states are South Dakota (2nd), Florida (3rd), Tennessee (4th), and Texas (5th).
Once again, Puerto Rico came in last among U.S. jurisdictions with a score of 2.13 out of 10. The least free U.S. states were New York (50th), California (49th), Hawaii (48th), New Mexico (47th) and Vermont (46th).
Among the remaining New England states, Massachusetts ranked 28th, Connecticut 29th, Maine 38th, Rhode Island 42nd, and Vermont 46th, making New Hampshire at No. 1 the only New England state to rank in the top half of states for economic freedom.
The report also includes an all-government ranking, which adds federal government policy to the index and includes the 50 U.S. states and the territory of Puerto Rico, 32 Mexican states, and 10 Canadian provinces.
Taking into account both federal and state policies, economic freedom peaked in 2004 then declined and bottomed out in 2009. From 2009 to 2017, economic freedom in North America slowly increased, but has remained more than a quarter-point below its 2004 peak ever since. In fact, average economic freedom across all 93 jurisdictions in the index has fallen every year since 2017 and is now only 0.02 points above its all-time low.
And even though the U.S. remains more economically free than Canada, the gap is relatively small.
“The evidence is clear—higher levels of economic freedom are associated with more prosperity, faster economic growth, more investment, and more job opportunities,” said Dean Stansel, economist and research associate professor at Southern Methodist University and co-author of the report. According to the report, total employment grew about three times faster in the most economically free U.S. states than it did in the least free over the last decade.
The Economic Freedom of North America report is co-authored by José Torra, the head of research at the Mexico City-based Caminos de la Libertad, and Ángel Carrión-Tavárez, director of research and policy at the Instituto de Libertad Económica in Puerto Rico. It is an offshoot of the Fraser Institute’s Economic Freedom of the World index, the result of more than a quarter century of work by more than 60 scholars, including three Nobel laureates.
See the full report at https://efotw.org and fraserinstitute.org/studies/economic-freedom.
New Hampshire’s scores in key components of economic freedom (from 1 to 10 where a higher value indicates a higher level of economic freedom), from 2021 to 2022:
- Government spending: Unchanged, at 8.84 both years
- Taxes: changed to 7.47 from 7.18
- Labor Market Freedom: changed to 8.34 from 7.93
Read the entire report here: us-economic-freedom-of-north-america-2024