For the eighth year in a row, Finland has been crowned the world’s happiest country, according to the 2025 World Happiness Report. However, the United States recorded its lowest ranking to date, slipping to No 24.
Released on 20 March to mark the United Nations’ International Day of Happiness, the report highlighted growing concerns over declining happiness and social trust in parts of Europe and North America. In contrast, Finland and its Nordic neighbours continued to set the gold standard for well-being, social support, and life satisfaction.
The happiness formula
The rankings are based on Gallup World Poll data from over 140 countries, with happiness measured through people’s life evaluations over the past three years (2022-2024). The study assesses six key factors: GDP per capita, social support, healthy life expectancy, freedom, generosity, and perceptions of corruption.
John Helliwell, a founding editor of the report and an emeritus professor of economics at the University of British Columbia, highlighted a key takeaway, people are often kinder than we assume.
“People’s fellow citizens are better than they think they are, and to realise that will make you happier, of course, but it’ll also change the way you think about your neighbours,” he said.
The world’s happiest countries
As in previous years, Nordic countries dominate the top spots. Denmark, Iceland, and Sweden secured the next three positions, while Norway held steady at No 7.
“Nordic countries like Finland continue to benefit from universally available and high-quality health, education, and social support systems,” said Ilana Ron-Levey, managing director at Gallup.
Finland’s happiness isn’t just about strong welfare policies its citizens’ mindset also plays a role. Research shows that Finnish people exhibit high levels of trust and community spirit, reflected in studies on lost wallets, where they are among the most likely to return them to their owners.
Latin America also made a surprise entry into the top 10, with Costa Rica (No. 6) and Mexico (No. 10) ranking for the first time. Strong social networks and positive economic perceptions contributed to their rise, according to Ron-Levey.
The power of positivity
While the report highlighted troubling trends, Helliwell suggested that a shift in mindset could make a difference.
“Look seriously at the people with whom you are working, with whom you are living, who are on your streets, and put on a rosier set of glasses when you’re dealing with them,” he advised.
“Negativity is poisonous to happiness,” he added, emphasising that simple acts of kindness and understanding can improve both personal and societal well-being.
The world’s happiest countries in 2025

India stands at 118 in the list The least happy countries
At the bottom of the list, Afghanistan (No. 147) remains the world’s unhappiest country, followed by Sierra Leone (No. 146), Lebanon (No. 145), Malawi (No. 144), and Zimbabwe (No. 143).