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The U.S. fell several spots to seventeenth place in the 2020 Economic Freedom Index compiled by conservative-leaning think tank the Heritage Foundation.
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The U.S. ranked twelfth in the 2019 index but was surpassed by countries including Chile and the Netherlands in 2020. Singapore, Hong Kong and New Zealand ranked first, second and third this year.
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The index authors look at factors including government spending, judicial effectiveness and business freedom to make the rankings.
The U.S.'s ranking fell because of its trade freedom score, the report said.