Macedonia has moved up 22 places in the world rankings to finish 56th amongst 184 countries worldwide, with the greatest progress in economic freedom, according to the latest report of the Heritage Foundation and The Wall Street Journal.

Macedonia is ranked 26th out of 43 countries in the Europe region, and its overall score has increased 4.5 points from last year, above the world average and reflecting a major improvement in labor freedom.

Reforms in labor market flexibility and regulation of investment enabled Macedonia's economy to achieve one of the highest score improvements in the 2010 Index. Macedonia also demonstrated high levels of trade, fiscal, and monetary freedom. Personal and corporate income tax rates have been very competitive, and the tax administration has been strengthened. Monetary stability has also been reasonably well maintained. Macedonia has established that it is generally open to global trade, and the financial sector has weathered the global financial crisis relatively well.

Macedonia is ranked higher in comparison to most former Yugoslav republics and surrounding countries: Slovenia - 61; Turkey - 67, Montenegro - 68; Greece - 73; Bulgaria - 75; Croatia - 92 and Bosnia and Herzegovina - 110.

For over a decade, the Heritage Foundation and The Wall Street Journal, Washington's preeminent think tank, have tracked the march of economic freedom around the world with the influential Index of Economic Freedom.