World Happiness Report 2025: Finland has retained its top spot as the happiest country in the world for the eighth consecutive year, according to the annual World Happiness Report. Released on the UN’s International Day of Happiness, the report assesses the quality of life in over 140 countries based on resident feedback. The report evaluates various factors such as social support, health, freedom, generosity, perception of corruption, and gross domestic product (GDP) to determine the happiness levels of 147 countries, Fortune reported.
Using a scale of 0 to 10, where 10 represents the best possible life imaginable, Finland scored an impressive average of 7.74, securing its position as the happiest nation globally.
“They’re wealthy, they’re healthy, have social connections, social support, [and] a connection with nature. They’re not happy, joyful, dancing in the streets type people, but they’re very content with their lives,” Jan-Emmanuel De Neve, professor of economics at the University of Oxford, leader of the Wellbeing Research Center and editor of The World Happiness Report, told Fortune.
Finland is followed closely by Denmark, Iceland, Sweden, and the Netherlands. These countries have consistently ranked high in happiness reports, thanks to their strong social support systems, high standard of living, and commitment to work-life balance.
Interestingly, Costa Rica and Mexico made their debut in the top 10, securing the 6th and 10th spots. respectively. On the other hand, the United States dropped to its lowest ranking at 24th place. The United Kingdom ranked at 23.
Top 10 happiest countries in the world
- Finland
- Denmark
- Iceland
- Sweden
- Netherlands
- Costa Rica
- Norway
- Israel
- Luxembourg
- Mexico
Where does India stand?
India has made a slight improvement in its happiness quotient, moving up from 126 in 2024 to 118 in the latest World Happiness Report, 2025. However, this ranking still places India behind several conflict-affected countries, including Ukraine, Mozambique, and Iraq.
Interestingly, India excelled in social support, thanks to its strong community-focused culture and tradition of larger families living together. On the other hand, India scored poorly on the freedom factor, which assesses whether individuals feel they have choices in their society and if those choices lead to a satisfactory life.
Among India’s neighboring countries, Nepal ranked the highest at 92, followed by Pakistan at 109, China at 68, while Sri Lanka and Bangladesh ranked lower at 133 and 134, respectively.
Unhappiest Countries
Afghanistan has been ranked as the unhappiest country in the world. The country’s low ranking is largely attributed to the struggles faced by Afghan women, who reported that their lives have become increasingly difficult.
Following Afghanistan, Sierra Leone and Lebanon ranked as the second and third unhappiest countries, respectively. These countries have faced significant challenges, including conflict, poverty, and social unrest.