The World’s Happiest Countries in 2025: What Makes Them Special

Happiness is a universal pursuit, and every year, the World Happiness Report provides insights into which countries lead the way in well-being and quality of life. In 2025, Finland has once again secured its position as the happiest country in the world, continuing an impressive eight-year streak at the top. The rankings are based on data from the Gallup World Poll, which evaluates countries on six key factors: GDP per capita, social support, healthy life expectancy, freedom, generosity, and perceptions of corruption.

The 2025 World Happiness Report reveals that Nordic nations continue to dominate the top positions, while Latin American countries like Costa Rica and Mexico have made their way into the top 10 for the first time. Meanwhile, the United States has seen its lowest ranking ever, falling to No. 24 due to declining social trust and increased polarization.

Let’s take a deeper look at what makes the world’s top 10 happiest countries stand out in 2025.

LIST OF THE  HAPPIEST COUNTRY in 2025

1. Finland

2. Denmark

3. Iceland

4. Sweden

5. Netherlands

6. Costa Rica

7. Norway

8. Israel

9. Luxembourg

10. Mexico

11. Australia

12. New Zealand

13. Switzerland

14. Belgium

15. Ireland

16. Lithuania

17. Austria

18. Canada

19. Slovenia

20. Czech Republic

Table of Contents

The 10 Happiest Countries in 2025

1. Finland – The Unbeatable Champion

Finland has held the title of the world’s happiest country for eight consecutive years. But what makes it so special?

Strong Social Welfare System: Finland offers universal healthcare, free higher education, and a robust social safety net.
Low Corruption: Transparency and trust in government institutions are remarkably high.
Work-Life Balance: Finns enjoy a short workweek, ample vacation days, and strong labor protections.
Strong Community Bonds: Finland has a culture of trust and neighborly support, with high levels of social capital.

2. Denmark – Happiness Through Social Equality

Denmark retains its No. 2 ranking due to its high level of social welfare and equality. Some factors that contribute to Danish happiness include:

Free healthcare and education for all citizens.
One of the highest rates of work-life balance in the world.
High taxation, but in return, strong public services and infrastructure.
A culture of “hygge” (coziness and well-being).

3. Iceland – Natural Beauty and Close-Knit Society

Iceland, with its breathtaking landscapes and strong sense of community, holds its position at No. 3.

Low crime rates and a strong sense of safety.
A high standard of living with universal healthcare and education.
A deep connection to nature, which improves mental well-being.
A tight-knit society where people feel a sense of belonging.

4. Sweden – A Leader in Sustainability and Well-Being

Sweden remains No. 4 on the list due to its commitment to sustainability, work-life balance, and gender equality.

Universal healthcare and paid parental leave policies.
A strong economy with high employment rates.
One of the best countries for outdoor activities and green living.
A high level of social trust and government transparency.

5. Netherlands – A Happy, Liberal, and Progressive Society

The Netherlands moved up to No. 5 in 2025, partly due to its excellent healthcare, strong economy, and liberal social policies.

A cycling culture that promotes healthy living.
Excellent healthcare and education systems.
Liberal policies on issues like drug decriminalization and LGBTQ+ rights.
A strong sense of social trust and equality.

6. Costa Rica – Latin America’s Happiness Leader

For the first time ever, Costa Rica enters the top 10 at No. 6, making it the highest-ranked Latin American country.

A strong environmental focus – Costa Rica runs on nearly 100% renewable energy.
A high life expectancy due to excellent healthcare and diet.
A culture centered on “Pura Vida” (pure life), emphasizing relaxation and joy.
No standing army, allowing resources to go toward social programs.

7. Norway – The Last Nordic Nation in the Top 10

Norway holds steady at No. 7, continuing its tradition of high social welfare, excellent public services, and economic stability.

One of the world’s highest GDP per capita.
A large sovereign wealth fund ensures long-term economic security.
High levels of trust in government and institutions.
Access to breathtaking landscapes for outdoor recreation.

8. Israel – A Drop in Ranking but Still in the Top 10

Israel dropped from No. 5 in 2024 to No. 8 in 2025, but it still maintains a high ranking due to strong social connections and economic growth.

A strong sense of national identity and community.
A robust tech industry and economy.
Resilient citizens despite geopolitical challenges.
A culture that values family and friendships.

9. Luxembourg – Small but Prosperous

Luxembourg, one of the smallest but wealthiest countries, comes in at No. 9.

A high GDP per capita.
Multicultural society with a high quality of life.
A well-developed healthcare and education system.
Beautiful landscapes and a low crime rate.

10. Mexico – A Surprise Entry into the Top 10

For the first time, Mexico breaks into the top 10 at No. 10, showing strong improvements in social cohesion and economic optimism.

Strong family values and cultural traditions.
Growing economic opportunities and confidence in the future.
A high level of social support.
Vibrant cities and beautiful natural landscapes.

Why Did the U.S. Drop to Its Lowest Rank?

For the first time, the United States fell to No. 24 in the World Happiness Report. Some contributing factors include:

Increased political polarization and declining social trust.
Young Americans feeling less supported and optimistic about the future.
Rising cost of living and economic uncertainty.
Social isolation and a decline in community engagement.

The United Kingdom also saw a similar decline, ranking No. 23, its lowest since 2017.

Key Takeaways from the 2025 Report

Nordic countries continue to lead due to strong social support, low corruption, and a high quality of life.
Latin American nations are rising, with Costa Rica and Mexico entering the top 10.
Economic prosperity is not the only factor—trust, social support, and work-life balance play key roles in happiness.
The U.S. and U.K. are struggling, highlighting the impact of political and social challenges.
Kindness and social trust are vital for a happier world.

Final Thoughts

The 2025 World Happiness Report reinforces that happiness is not just about money or economic growth—it’s about social connections, trust, and well-being. Countries that prioritize work-life balance, universal healthcare, and strong social support systems tend to be the happiest.

As we look toward the future, fostering community, trust, and kindness may be the most effective way to create a happier world. Whether through small acts of generosity or building a more inclusive society, every country can learn from the leaders in happiness.

Where does your country rank? And what can we all do to create a happier world?