Ukraine increased its points from 46.8 to 48.1 score on a scale of 0 to 100, falling from 162nd to 166th position among 180 countries (178 a year ago), according to the Heritage Foundation annual study.

Liberia, Chad, Afghanistan, Sudan and Angola are ahead of Ukraine (with scores from 49.1 to 48.5). Suriname, Bolivia, Guinea and Turkmenistan follow Ukraine (with scores from 48 to 47.4). All these countries are in the group of repressed economies (49.9-40 scores).

Ukraine’s economy has contracted deeply and remains very fragile. Ongoing disruptions of the country’s productive and export capacities and significant capital outflows have put increasing pressure on the currency and reserves, severely undermining monetary stability, according to the study.

The overall soundness of fiscal policy has deteriorated substantially, and public deficits and debt have increased sharply. The rule of law remains fragile and is further undercut by judicial ineffectiveness. A strong commitment to structural reforms to reduce corruption and open the economy further to Western investment and financial institutions will be crucial in helping to stabilize the economy. The government has launched a comprehensive set of reforms to restore growth, but progress is not yet evident," reads the study.

Financial freedom is estimated at 30 points, government integrity at 29.2, investment freedom at 25, and judicial effectiveness at 22.6, while trade freedom was assessed at 85.9 and tax burden at 78.6.

The top five countries of the index with 89.8-81 score are Hong Kong, Singapore, New Zealand, Switzerland and Australia.