A drop of 12 percentage points from 91 per cent in 2006 to 79 per cent in 2013 was reported.
In that same period, the percentage of Americans dissatisfied with the freedom to choose what they do with their lives has more than doubled, from 9 per cent to 21 per cent.
The survey asked people in more than 120 countries each year whether they are satisfied or dissatisfied with the freedom to choose what they do with their lives.
After seven years and a 12-point decline, the US no longer makes the top quartile worldwide.
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The decline in perceived freedom among Americans could be attributed to the US economy. Many Americans continue to lack confidence in the economy and see it as one of the biggest problems facing the country, the survey reported ahead of the Independence Day on July 4.
The Gallup poll also pointed towards the poor confidence in the government as another possible reason that feelings of freedom have declined.
New Zealand recorded the highest level of satisfaction with freedom at 94 per cent followed by Australia, Cambodia, Sweden and the UAE.