Top 10 happiest countries in the world 2025: Finland retains top spot; where does India rank?

For the eighth consecutive year, Finland remains the happiest country in the world. The country’s breathtaking landscapes, strong social welfare system, and work-life balance continue to set the benchmark for happiness. Finnish citizens enjoy high trust in government, access to nature, and a deep sense of security—key factors behind their remarkable life satisfaction.

Nordic nations dominate the rankings

Once again, Nordic countries dominate the rankings, showcasing their strong social structures and emphasis on well-being. Denmark holds steady at number two, followed closely by Iceland (third), Sweden (fourth), and Norway (seventh). These nations prioritise sustainability, equality, and a sense of community, factors that contribute to their consistently high happiness scores.

The United States of America faces a decline

Not every country is celebrating this year’s results. The US has dropped to 24th place—its lowest ranking ever. The decline is attributed to rising social isolation, economic disparities, and political polarisation. Similarly, the United Kingdom finds itself at 23rd place, reflecting growing concerns over quality of life and economic uncertainty.

Where does India stand?

India ranks 118th out of 147 countries, with a happiness score of 4.389. This places it below its neighbors Nepal, Bangladesh, and China. The drop is linked to growing mental health concerns, exacerbated by the challenges of the COVID-19 pandemic and increasing economic pressures.

New entries and surprises

This year, some unexpected countries have broken into the top 10. Costa Rica, at the sixth rank, and Mexico at tenth stand out, proving that happiness isn’t solely tied to GDP but also to social bonds, culture, and optimism. Both nations thrive on strong communities and a deep connection to their traditions.

How are these rankings determined?

The World Happiness Index goes beyond economic indicators to measure happiness holistically. The rankings are based on factors such as, GDP per capita, healthy life expectancy, social support, freedom to make life choices, generosity, perceptions of corruption.

By analysing these aspects, the report provides a well-rounded picture of where the world stands in terms of happiness.

So, which countries have climbed the rankings and which countries have dropped down in the happiness index, let’s dive into the top 10 happiest countries in the world, based on the latest findings from the World Happiness Report 2025.

Top 10 happiest countries in the world 2025:

1. Finland

Finland (Source: Unsplash)

For the eighth year in a row, Finland holds its title as the world’s happiest country. With breathtaking natural landscapes, a strong sense of community, and low corruption, it’s no surprise that Finns enjoy such high life satisfaction. The country’s work-life balance, social support systems, and culture of helping others contribute to its overall well-being. Life expectancy in Finland averages 81 years.

2. Denmark

Denmark (Source: Unsplash)

Denmark ranks as the second-happiest country in the world, with a happiness score of 7.521. A key reason behind this high level of life satisfaction is the country’s strong commitment to equality and social welfare. With free healthcare, subsidised childcare, tuition-free universities, and generous pensions, Denmark ensures that its citizens enjoy a high quality of life and financial security.

3. Iceland

Iceland (Source: Unsplash)

Iceland, like Finland and Denmark, benefits from strong social support and economic stability, which play a big role in its high happiness levels. But beyond policies and prosperity, its breathtaking volcanic landscapes and relaxing hot springs add to the well-being of its people. With a happiness score of 7.515, Iceland proudly secures third place on the list.

4. Sweden

Sweden (Source: Unsplash)

Sweden holds the fourth spot on the happiness index this year, boasting a score of 7.345. Like its Nordic neighbors, it prioritises social welfare, economic stability, and low corruption, ensuring a high quality of life for its people. Sweden also stands out for its strong commitment to sustainability and environmental protection, making it one of the world’s most forward-thinking nations.

5. The Netherlands

The Netherlands (Source: Unsplash)

Ranked as the fifth happiest country with a score of 7.30, the Netherlands continues to offer its citizens a high quality of life. The country thrives on strong social support, economic stability, and an enviable work-life balance. Notably, it’s one of only three nations in the top 10 with a population exceeding 10 million.

6. Costa Rica

Costa Rica (Source: Unsplash)

Making its debut in the top 10 with a score of 7.274, Costa Rica earns its spot thanks to its “Pura Vida” philosophy, which embraces a laid-back, fulfilling way of life. Known for its commitment to sustainability and close-knit communities, the country proves that happiness isn’t just about wealth—it’s about living in harmony with nature and people.

7. Norway

Norway (Source: Unsplash)

Norway ranks as the seventh-happiest country in the world, with an impressive happiness score of 7.262. A combination of strong social support, high GDP per capita, and excellent healthcare contributes to its well-being. The Norwegian government prioritises education, healthcare, and social services, ensuring a high quality of life and a sense of security for its citizens.

8. Israel

Israel (Source: Unsplash)

Israel stands as the happiest country in the Middle East, securing the eighth spot globally with a happiness score of 7.234. Despite facing various challenges, its strong economy, stable democratic institutions, and rich, dynamic culture contribute to the nation’s high ranking and overall sense of well-being.

9. Luxembourg

Luxembourg (Source: Unsplash)

Luxembourg secures the ninth spot on the list with a happiness score of 7.122. This small yet wealthy European nation is known for its high GDP per capita, providing a stable and prosperous life for its residents. With a rich multilingual culture and an excellent quality of life, Luxembourg continues to be a top-ranking country for well-being.

10. Mexico

Mexico (Source: Unsplash)

Making its debut in the top 10 with a happiness score of 6.979, Mexico stands out for its strong sense of community, deep-rooted traditions, and an optimistic outlook on life, even in the face of economic challenges. Notably, it is the only country on the list with a population exceeding 100 million, making its high ranking even more remarkable.

Unhappiest countries:

Afghanistan remains the unhappiest country in the world, holding the last spot again. Joining it at the bottom of the rankings are Sierra Leone and Lebanon, highlighting ongoing struggles that continue to impact overall well-being in these nations.

Happiness isn’t just about wealth—it’s about balance, relationships, and a sense of belonging. As the 2025 rankings show, countries that prioritise well-being, social trust, and sustainable lifestyles continue to score high. Will Finland remain on top in the years to come, or will new challengers emerge? Only time will tell.