TORONTO, ONTARIO--(Marketwire - Sep 18, 2012) - Canada is among the top five most economically free countries in the world, well ahead of the United States which has fallen to 18th overall, according to the Fraser Institute''s annual Economic Freedom of the World report.

Canada, with an economic freedom score of 7.97 out of 10, tied with Australia to rankfifth out of 144 nations and territories included in the Economic Freedom of the World: 2012 Annual Report. Last year, Canada ranked sixth overall.

"Canada''s relatively high level of economic freedom has resulted in stronger economic growth, higher income levels, and less pain from the global recession," said Fred McMahon, Fraser Institute vice-president of international policy research.

"Meanwhile, other nations embraced heavy-handed regulation and extensive over-spending in response to the American and European debt crises. Consequently, their levels of economic freedom decreased."

The United States, long considered a champion of economic freedom among large industrial nations, continues its protracted decline in the global rankings. This year, the U.S. plunged to 18th, its lowest-ever ranking and a sharp drop from second overall, the position it held in 2000. Much of this decline is a result of high spending on the part of the U.S. government.

Hong Kong again topped the rankings of 144 countries, followed by Singapore, New Zealand, and Switzerland. Australia and Canada tied for fifth overall.

Research shows that people living in countries with high levels of economic freedom enjoy greater prosperity, more political and civil liberties, and longer life spans.

Globally, the average economic freedom score rose slightly to 6.83 in 2010, the most recent year available, after plummeting to its lowest level in nearly three decades with a score of 6.79 in 2009.

The annual Economic Freedom of the World report is the premier measurement of economic freedom, using 42 distinct variables to create an index ranking of countries around the world based on policies that encourage economic freedom. The cornerstones of economic freedom are personal choice, voluntary exchange, freedom to compete, and security of private property. Economic freedom is measured in five different areas: (1) size of government, (2) legal structure and security of property rights, (3) access to sound money, (4) freedom to trade internationally, and (5) regulation of credit, labour, and business. The full report is available at http://www.freetheworld.com.

Canada''s scores in key areas of economic freedom (from one to 10, where higher values indicate higher levels of economic freedom) are:

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The Fraser Institute: Canada Leads North America in Economic Freedom, Tied With Australia for Fifth Spot Globally; U.S ...