Total Government Expenditures

Economic Freedom Rating

As a Percent of GDP

Part 1: The Economic Freedom Ratings for the Components and Various Area and

Summary Indexes: 1975, 1980, 1985, 1990 and 1995.

(The numbers in parentheses indicate the actual values for the components.)

Components of Economic Freedom

1975

1980

1985

1990

1995

I. Money and Inflation

4.8

5.5

3.9

9.1

10.0

(a) Annual Money Growth (last 5 yrs.)

6

(12.2)

7

(8.8)

4

(14.7)

7

(8.6)

10

(1.8)

(b) Inflation Variablity (last 5 yrs.)

9

(2.1)

10

(0.8)

8

(2.4)

10

(0.8)

10

(0.3)

(c) Ownership of Foreign Currency

0

0

0

10

10

(d) Maint. of Bank Account Abroad

0

0

0

10

10

II. Government Operation

3.3

3.7

3.7

4.4

6.9

(a) Gov't Consump. (% of Total Consump.)

0

(30.7)

0

(32.3)

0

(31.6)

0

(32.8)

0

(31.8)

(b) Government Enterprises

4

4

4

4

4

(c) Price Controls

-

-

-

6

9

(d) Entry Into Business

-

-

-

-

10.0

(e) Legal System

-

-

-

-

10.0

(f) Avoidance of Neg. Interest Rates

8

10

10

10

10

III. Takings

1.3

0.4

0.4

0.4

0.5

(a) Transfers and Subsidies (% of GDP)

2

(17.8)

1

(20.8)

1

(20.4)

1

(22.6)

0

(26.5)

(b) Marginal Tax Rates (Top Rate)

1

(63)

0

(66)

0

(73)

0

(68)

1

(63.5)

(c) Conscription

0

0

0

0

0

IV. International Sector

6.7

6.7

7.7

7.5

8.2

(a) Taxes on International Trade (Avg.)

9

(0.9)

10

(0.1)

10

(0.0)

10

(0.0)

10

(0.0)

(b) Black Market Exchange Rates (Prem.)

8

(1)

7

(2)

10

(0)

10

(0)

10

(0)

(c) Size of Trade Sector (% of GDP)

3

(30.6)

3

(33.3)

4

(36.5)

3

(32.8)

2

(32.4)

(d) Capital Transactions with Foreigners

5

5

5

5

8

Economic Freedom Rating

3.9

3.8

3.7

4.8

5.9

Ranking of Country

55

57

73

43

42

Part 2: Recent Economic Indicators:

Population 1996:

5.3

Real Per Capita GDP

:

1996=

$21,777

(in millions)

(in 1995 U.S. dollars)

Annual Rate of Change (1985-96):

0.2%

Avg. Growth Rate:

1980-90=

2.0%

1990-96=

1.8%

Economic Indicators:*

1988

1989

1990

1991

1992

1993

1994

1995

1996

Change in Real GDP: Aggregate

1.2

0.6

1.4

1.3

0.2

1.5

4.4

2.6

2.7

: Per Capita

1.0

0.4

1.2

1.1

0.0

1.3

4.2

2.4

2.5

Inflation Rate (CPI)

4.6

4.8

2.6

2.4

2.1

1.3

2.0

2.1

2.3

Change in Money Supply: (M1)

19.5

0.4

8.1

9.2

-0.9

10.5

-1.4

4.6

8.9

: (M2)

5.4

1.3

6.5

6.1

-0.7

19.7

-10

6.2

7.9

Investment/GDP Ratio

17.9

18.4

17.3

16.4

15.4

14.2

14.8

17.5

-

Size of Trade Sector (% of GDP)

31.0

32.8

32.8

34.1

33.2

30.8

32.0

32.4

-

Total Gov't Exp./GDP Ratio

59.4

59.6

58.6

59.2

61.1

63.7

63.6

60.9

61.6

p

General Government Budget

Deficit (-) or Surplus (+)

As a Percent of GDP

0.6

-0.5

-1.5

-2.1

-2.9

-3.9

-3.5

-1.6

-1.5

Unemployment Rate

8.6

9.3

9.6

10.5

11.4

10.1

8.2

7.1

5.6

a

* The figures in this table are in percent form.

a October, 1996.

p Preliminary.