For the eighth consecutive year, Finland has been named the happiest country in the world, according to the latest World Happiness Report. Released annually on the United Nations’ International Day of Happiness, the report evaluates over 140 countries based on residents’ well-being and overall quality of life.

The study considers key factors such as social support, health, personal freedoms, generosity, corruption perception, and economic stability to rank 147 nations. Finland secured the top spot with an average happiness score of 7.74 on a scale of 0 to 10, where 10 represents the best possible life.

Jan-Emmanuel De Neve, an economics professor at the University of Oxford and a lead editor of the report, explained that Finland’s high ranking is due to its citizens’ strong social connections, good health, wealth, and deep bond with nature. While Finns may not display outward expressions of joy, they report being highly content with their lives.

Top-Ranking Countries in the 2025 Happiness Report

Denmark, Iceland, Sweden, and the Netherlands followed Finland in the rankings, maintaining their usual spots as some of the happiest places to live. These nations consistently perform well due to their emphasis on social welfare, economic stability, and work-life balance.

Costa Rica and Mexico entered the top 10 for the first time, placing 6th and 10th, respectively. Meanwhile, the United States dropped to 24th place—its lowest ranking to date—while the United Kingdom landed at 23rd.

Top 10 Happiest Countries in the World

1. Finland
2. Denmark
3. Iceland
4. Sweden
5. Netherlands
6. Costa Rica
7. Norway
8. Israel
9. Luxembourg
10. Mexico

India’s Position in the Happiness Index

India showed a slight improvement in its happiness ranking, moving from 126th place in 2024 to 118th in 2025. Despite this progress, India still lags behind several conflict-affected nations, including Ukraine, Mozambique, and Iraq.

One of India’s strongest aspects in the report was its sense of social support, largely due to the country’s deep-rooted cultural emphasis on family and community ties. However, the nation scored low in personal freedom, which measures the extent to which individuals feel they can make choices that lead to a fulfilling life.

Among South Asian countries, Nepal ranked the highest at 92, followed by Pakistan at 109. China performed significantly better, ranking 68th, while Sri Lanka and Bangladesh found themselves at the lower end of the scale at 133 and 134, respectively.

The World’s Unhappiest Countries

Afghanistan remains the lowest-ranked country on the happiness index, with its position heavily influenced by the worsening situation for women, who report a significant decline in their quality of life.

Following Afghanistan, Sierra Leone and Lebanon ranked among the unhappiest nations, both struggling with economic instability, political turmoil, and social challenges.

The World Happiness Report continues to highlight the importance of strong social structures, economic stability, and personal freedoms in shaping overall well-being across the globe.