"Those who say that there is no freedom in the Philippines are out of touch with reality," Press Secretary Ignacio Bunye said in a statement.
The US-based group said in a report released Monday that the number of electoral democracies around the world had risen from 119 to 122 this year amid encouraging inroads in the Middle East and Africa.
But it reduced the rating of the Philippines "based on credible allegations of massive electoral fraud, corruption, and the governments intimidation of elements in the political opposition."
Mrs. Arroyo survived an impeachment vote in September that arose from allegations she cheated to win the May 2004 presidential election.
"All the people at Freedom House have to do is to come to the Philippines," Bunye said. "They can see for themselves how constitutional democracy works, how the media works and how the people freely express themselves."
In its report, Freedom House expressed concern about countries like the United States and France, where it saw "looming problems" with electoral setups and immigrant integration.
However, the increase in the number of electoral democracies is encouraging according to Arch Puddington, director of research at the organization.
"Among other things, the past year has been notable for terrorist violence, ethnic cleansing, civil conflict, catastrophic natural disasters, and geopolitical polarization," he added. "That freedom could thrive in this environment is impressive."
The three additions to the list of electoral democracies were the African nations of Burundi, Liberia and the Central African Republic.
The three countries afforded considerable space for political opposition and met the minimum standard of a fair vote count, the report said.
But the most significant improvements were noted in the Middle East, where Lebanon was upgraded from "not free" to "partly free," despite a series of political killings that shook the country.
The Lebanese witnessed major improvements in both political rights and civil liberties following the withdrawal of Syrian troops based in the country, the report said.
It also noted elections held in Iraq, Egypt, and the Palestinian territories, the introduction of womens suffrage in Kuwait, and improvements in Saudi Arabias media environment among other encouraging signs in the region. AFP