SINGAPORE is the most successful economy in the world, according to an index released on Monday by the London-based think tank, the Legatum Institute.

Its Prosperity Index ranks Singapore's economy as the best of 142 countries, with Switzerland, China, Norway, and Germany taking the next four spots.

Said Nathan Gamester of the Legatum Institute: "Singapore is now the No 1 economy in the world according to our index. This is largely due to its productivity rate and the strength of its export market.

"Overall Singapore is a very prosperous country, with good opportunities for entrepreneurs and a good-quality health and education system. However, there is still room for improvement as Singapore ranks 38th globally in the Personal Freedom category."

The country ranked in the top 20 in all but two sub-indices - personal freedom (38th) and social capital (25th).

The annual index ranks countries across eight categories: the economy, entrepreneurship and opportunity; governance; education; health; safety and security; personal freedom; and social capital.