The Bahamas’ economic freedom score is 68, making its economy the 46th “freest” economy in the world, according to 2012 Index of Economic Freedom report released by The Heritage Foundation in partnership with The Wall Street Journal.

Its overall score is unchanged from last year, with gains in labor freedom and monetary freedom offset by worsened conditions for business freedom and government spending.

The Bahamas is ranked 9th out of 29 countries in the South and Central America/Caribbean region, and its overall score is higher than the regional and world averages.

The index says that relatively sound macroeconomic management has contributed to steady economic growth, but the Bahamas’ overall economic freedom has been declining modestly.

The foundations of economic freedom remain relatively sound, with freedom from corruption and property rights scoring above world averages.

However, further improvements in these two areas will be critical to improving institutional efficiency. The country’s overall regulatory system is conducive to entrepreneurial activity, and there are no individual or corporate income taxes, but economic dynamism remains constrained by relatively closed markets, the report states.

Download a PDF of the 2012 Index of Economic Freedom report here.