Hong Kong has retained its status as the world's freest economy, according to the latest ranking by a Canadian policy think tank.

The annual "Economic Freedom of the World" report, released by the Fraser Institute on Thursday, ranked the SAR first among 165 jurisdictions.

The city came first for "freedom to trade internationally".

Singapore was second overall and New Zealand took third place.

"Amid the intensifying geopolitical tensions, and rising unilateralism and protectionism that disrupt the international trade system and global economic order, Hong Kong will, as always, continue to steadfastly uphold its status as a free port," a government spokesperson said.

Meanwhile, the city again placed third in the Global Financial Centres Index, compiled by London-based think tank Z/Yen and the China Development Institute from Shenzhen.

The rating for Hong Kong – which is top in the Asia-Pacific region – increased by four points to 764.

New York and London ranked first and second overall.

Chief Executive John Lee described the third-place finish as "encouraging", saying it showed the city's leading position and strength as an international financial centre.