EIU Democracy Index 2025: democracy stabilises after eight years of decline

LONDON, April 7, 2026 /PRNewswire/ --

• Following eight years of decline, 2025 marks a stabilisation of democracy scores that suggests an end to the global democratic recession.
• The index shows remarkable stability in the higher-ranked "full democracies" and the lower-ranked "authoritarian regimes". Movement in the lower-ranked "flawed democracies" and higher-ranked "hybrid regimes" is what indicates the democracy recession may have come to an end.
• One glaring exception is the United States, falling from 28th to 34th in the ranking, where democracy has further deteriorated since Donald Trump's inauguration in January 2025 (overall score down by 0.2 points on our 0-10 scale).
• The stability of "full democracies" is anchored by the Nordic countries (Norway, Denmark, Iceland, Finland and Sweden) which remain in the top spots of the Democracy Index ranking, with New Zealand claiming second place.
• EIU's Democracy Index, a measure of state democracy in 167 countries and territories, assesses electoral processes, governance, civil liberties, political participation and political culture.

EIU's 2025 Democracy Index shows that after eight years of decline, 2025 marks a stabilisation of democracy scores that suggests an end to the democracy recession is underway. Almost 75% of countries either saw score improvements from last year or remained constant. One glaring exception is the United States (ranked 34th), where democracy has deteriorated since Donald Trump's inauguration in January 2025.

Globally, the average score in the 2025 Democracy Index rose less than a half of a percent from 5.17 to 5.19, whilst the average score for "flawed democracies" and "hybrid regimes" rose at double that rate, from 6.47 to 6.52. Increases in Western European countries and Canada (ranked 9th) helped drive the overall improvements, possibly due to Trump's actions creating a pathway for the body politic to galvanise around unifying issues such as mutual defense, preservation of ways of life and economic progress.

The 2025 index reveals a critical dynamic that could determine the outlook for democracy—the rise and impact of political participation. After almost a decade of falling participation in Latin America and the Caribbean, the region has seen a reversal. Eyes are now turned to Asia and Sub-Saharan Africa, where younger populations are beginning to demand democratic progress as well.

Despite the fall in the US score from 7.85 to 7.65, Canada's increased score led to North America's score elevating from 8.27 to 8.37, with Canada having improved by almost 0.4 points but the US having declined by 0.2 points. The US fell six spots in the global ranking to 34th, slipping further into the "flawed democracy" category, where it has stood since 2016. Several actions and policies of the Trump administration challenged democratic norms and decreased its civil liberties score. Political culture remains the lowest score for North America, weighed down by intense political and cultural polarisation in the US and further compromising the functioning of government score too.

Constance Hunter, chief economist at EIU, says: "The countries in the middle of our Democracy Index are where the dynamism lies. The end of eight years of democratic decline is a welcome development and a reminder of why the data are valuable. When news emanating from the US and the Trump administration can dominate the news cycle, it is important to recognise the Democracy Index covers 166 other countries and territories in the world. Using EIU's Operational Risk model, this year we conducted comparative analysis which showed that countries which rank higher in our Democracy Index have lower operational risk. In countries--mainly full and flawed democracies--where institutional quality is high, operating risks are low. This finding confirms what economists have long known: the rule of law and property rights, are among a number of so-called soft data factors that support economic growth. At the other end of the spectrum, autocracies reveal a high level of operating risk and significant dispersion. In these types of regimes, civil liberties and autocracy are not just normative measures--they are direct proxies for the discretionary power of the executive over business operations and capital flows. This connection suggests our Democracy Index is a leading indicator of present and future risk."

One of the most enduring structures of government is the authoritarian regime which limits both civil liberties and political participation. In 2025, only Angola joined the ranks of "authoritarian regimes" which govern 39.2% of the world population. Following authoritarian regimes, the second largest category in terms of number of countries (48) and world population (38.4%) is the "flawed democracy." When examining the characteristics of this category it is important to note that democracy is by its nature flawed. Many democracies hover between full and flawed democracies and their scores fluctuate in a narrow range between the two categories each year. A prime example is France (ranked 26th) which has been re-classified as a "full democracy," after being adjusted to a flawed one last year, as personal freedoms after pandemic restrictions continue to normalise. Four countries moved from hybrid regimes to flawed democracies: Romania (69th), Malawi (70th), Senegal (72nd), Paraguay (73rd).

EIU's Democracy Index 2025 is available at https://econgrp.co/DemocracyIndex2025

Additional exclusive content and deeper analysis are available through our Viewpoint Country Analysis service, which clients use to inform strategic planning and investment decisions. To arrange a demonstration or explore its features and content beyond the Democracy Index, please contact us or visit https://www.eiu.com/n/solutions/viewpoint/country-analysis/.

About EIU
EIU, part of Economist Enterprise, operates at the intersection of macroeconomics and geopolitics, delivering data-led insights that empower financial market, corporate, and government leaders to make strategic decisions for the future. Trusted by the world's largest organisations for 80 years, EIU is known for its award-winning macroeconomic forecasts and independent, actionable insights and analytics—enriched by geopolitical analysis.

Our breadth of coverage across 200+ markets, including 130+ emerging markets, and our global team of subject matter experts allow us to connect and contextualise global trends and events. This ensures our clients are fully informed to take action, with confidence and credibility, in a rapidly evolving world. For more information, please visit www.eiu.com.

About The Economist Group
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SOURCE The Economist Intelligence Unit (EIU)