With Finland retaining its top position once again in the 2025 World Happiness Report — for the eighth straight time — followed by Denmark, Iceland and Sweden, the Nordic countries show to the world that they are the happiest. The poll takes into account many factors like gross domestic product per capita, healthy life expectancy, social support, freedom to make key life decisions, generosity and perceptions of corruption. But one honorable mention about Nordic countries is that they rank among the top places for expected and actual return of lost wallets.
“People are too pessimistic about the kindness of their communities. The return rate of lost wallets is much higher than people expect, especially in the Nordic countries, which have the highest rates of both expected and actual wallet returns,” the latest happiness report published by the University of Oxford’s Wellbeing Research Center said.
Social support is believed to be one of the major reasons behind the happiness of the Nordic countries. These countries have robust welfare states that provide universal healthcare, free education (including higher education), subsidized childcare, and generous parental leave.
Trust is another cornerstone of Nordic happiness. The 2025 report highlights that Nordic countries score exceptionally high in trust—both in institutions and in fellow citizens. Low perceptions of corruption mean people believe their governments use tax revenues effectively to fund public goods like education and infrastructure. Additionally, interpersonal trust is evident in everyday acts of benevolence, such as the high likelihood of lost wallets being returned. This trust strengthens community bonds and enhances overall well-being.
Economic prosperity, paired with equality, plays a significant role, according to experts. While GDP per capita is high in these nations, it’s the equitable distribution of wealth that sets them apart. Progressive taxation funds public services, reducing income inequality and ensuring that happiness is not concentrated among a wealthy few. The report notes that Nordic countries have some of the smallest “happiness gaps,” meaning most of their populations report high life satisfaction, not just a privileged minority.
Nordic citizens enjoy the freedom to make life choices, supported by policies like flexible working hours and substantial vacation time. Norway, for instance, boasts a healthy work-life balance with an average workweek of about 27 hours, far below many global standards. This allows people more time for family, hobbies, and personal fulfilment, boosting life evaluations. Despite long, dark winters, Nordics embrace outdoor lifestyles and communal activities, like Finland’s sauna culture or Norway’s “friluftsliv” (open-air living).
