by Cherrie Regalado Posted on 01/14/2014 2:45 PM |Updated 01/14/2014 4:18 PM

MODERATELY FREE. The country improves its ranking in the Economic Freedom Index. Screenshot from Hertiage Foundation.

MANILA, Philippines The Philippine economy is moderately free, improving its score for the third consecutive year, according to a Washington-based think tank that has been doing an index of countries for two decades.

The Heritage Foundation released on Tuesday, January 14, its 2014 Index of Economic Freedom, which shows the Philippines with a score of 60.1, improving its ranking by 8 places, from 97th in 2013 to 89th for 2014.

The foundation stressed that economic freedom exists in a country if every citizen is able to control his or her own labor and property. Economic freedom also means that each citizen is unconstrained by the state and able to freely work, consume, and invest.

The Philippines' score is 1.9 points higher than last years 58.2 due to the significant improvements in investment freedom, business freedom, monetary freedom, and the control of government spending.

The country has advanced by 5.1 points since the Index started 20 years ago. This is also the third consecutive year that Philippines overall score has improved.

With its third consecutive year of overall score improvement, the Philippines has risen back to 'moderately free' in the 2014 Index, the Heritage Foundation noted.

The Philippines ranked 16th out of 42 countries in the AsiaPacific region, but the countrys overall score is slightly below the world average of 60.3.

The government has pursued a series of legislative reforms to enhance the investment environment and incentivize broader-based private-sector job growth. Despite progress, lingering institutional challenges will not be overcome without a deeper commitment to reform. Although the perceived level of corruption has declined, more effective anti-corruption measures need to be firmly institutionalized, the Heritage Foundation said.

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Economic freedom in PH improves for third straight year