Moldova climbed two places in the 2021 World Economic Freedom Ranking
Recently the Heritage Foundation published the Economic Freedom Index for 2021. Moldova increased its rank by 2 positions, from 87 in 2020 up to 85 in 2021. The overall score improved as well, from 62 up to 62.5.
The Index is composed of 12 sub-indicators. The improvement was generated primarily by one of the sub-indicators – Tax Burden, for which the score improved by more than 9%, from 86.1 in 2020, up to 94 in 2021.
This was most probably because of the reduction in the marginal personal income tax, which was reduced from 18% down to 12% by the end of 2018, and was acknowledged with delay by the Index.
Other sub-indicators changed less significantly in a negative or positive way, and contributed slightly to the changes in the overall score.
The Secretariat of the Economic Council to the Prime Minister is supported by the European Bank for Reconstruction and Development, funded by the UK Government’s Good Governance Fund, and the International Finance Corporation’s Investment Climate Reform Project funded by the Government of Sweden’s International Development Agency.
