Albertans can celebrate their province's status as the leader in economic freedom within Canada, but a new continent-wide analysis reveals a sobering comparison with their southern neighbours. According to the Economic Freedom of North America 2025 (EFNA) report, published in December 2025, Alberta ties for 30th place overall when ranked alongside all Canadian provinces, U.S. states, and Mexican states.
The Continental Rankings: A Reality Check for Canada
The report, a collaborative effort by Canada's Fraser Institute and Mexico's Caminos de la Libertad, measures the ability of individuals to make their own economic choices regarding work, commerce, property, and contracts. While Alberta is the highest-ranking Canadian province, its tie with West Virginia for 30th spot underscores a broader trend of American dominance in the rankings.
The next Canadian province on the list is British Columbia, which finds itself tied with Rhode Island for 47th place. The analysis evaluates policies across three federal governments and uses ten key variables at the provincial and state level, including tax burdens and labour market regulations.
Who Leads in Economic Freedom?
Topping the 2025 EFNA rankings is New Hampshire, followed closely by South Dakota and Idaho, which are tied for second place. This finding is corroborated by other indices, such as the Cato Institute's Freedom in the 50 States, which also places New Hampshire first for economic liberty.
"When people are economically free, they are allowed to make more of their own economic choices," stated the report's authors, including Dean Stansell of Southern Methodist University and Matthew D. Mitchell of the Fraser Institute. The authors argue that increased government spending and higher taxes directly correlate with reduced economic freedom.
Methodology and the Canadian Context
The report's methodology sensibly argues that workers should have the right to choose whether or not to join a union. It also notes that rankings can shift when jurisdictions are compared only within their own countries, due to differing federal policies. However, the full continental ranking provides the clearest picture of relative standing.
At the bottom of the list, the least economically free U.S. states include New York, California, and Hawaii, according to the data. The report consistently shows that jurisdictions with lower taxes and fewer restrictions outperform those with more government intervention.
For Alberta, being the best in Canada is a notable achievement, but the 30th-place continental ranking reveals a significant competitive gap with much of the United States, highlighting the impact of policy choices on economic liberty and prosperity.
