Finland has once again been ranked as the world's happiest country, marking its eighth consecutive year at the top, according to the World Happiness Report 2025 released on Thursday.
The latest report, compiled by the Wellbeing Research Centre at the University of Oxford in collaboration with Gallup and the United Nations Sustainable Development Solutions Network, highlights the continued dominance of Nordic nations in global happiness rankings.
Denmark, Iceland, and Sweden followed Finland, securing the top four positions in the same order as the previous year.
The rankings are based on individuals’ self-assessments of their overall life satisfaction. Experts across multiple disciplines, including economics, psychology, and sociology, attribute variations in happiness to factors such as GDP per capita, life expectancy, social support, personal freedoms, generosity, and perceptions of corruption.
Jon Clifton, Chief Executive of Gallup, highlighted the role of social trust and interpersonal connections in shaping happiness levels.
“Happiness isn't just about wealth or growth — it's about trust, connection and knowing people have your back. If we want stronger communities and economies, we must invest in what truly matters: each other,” he remarked.
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The report underscores the significance of social interactions, highlighting that communal activities such as sharing meals and maintaining strong support networks contribute significantly to happiness.
It was found that in regions such as Mexico and Europe, households comprising four to five members exhibited the highest levels of happiness.
Additionally, a belief in the kindness of others emerged as a critical factor. The study indicated that individuals who trust others to return a lost wallet were generally more satisfied with their lives.
Nordic nations ranked highest in both expected and actual wallet return rates, reinforcing the correlation between social trust and happiness.
Researchers further observed that people tend to underestimate the kindness of their communities.
The report noted that actual wallet return rates are nearly twice as high as perceived by the public, suggesting widespread underappreciation of communal goodwill.
While European nations continued to dominate the top 20, Israel secured the eighth spot despite ongoing conflicts, while Mexico and Costa Rica entered the top 10 for the first time, ranking sixth and tenth, respectively.
Conversely, the United States fell to its lowest-ever ranking at 24th, having once peaked at 11th place in 2012.
The decline was attributed to diminishing social support structures, with the number of individuals dining alone in the US increasing by 53 per cent over the past two decades.
The United Kingdom also saw a decline, ranking 23rd, its lowest position since the 2017 report.
Afghanistan remains 'unhappiest nation'
At the other end of the spectrum, Afghanistan retained its position as the world's unhappiest country, with Afghan women reporting particularly dire living conditions.
Sierra Leone ranked second from the bottom, followed by Lebanon.
A troubling trend highlighted in the report is the growing sense of isolation among young adults. Nearly one-fifth (19 per cent) of young people globally reported having no one to turn to for social support in 2023, marking a 39 per cent rise since 2006.
The report presents an urgent case for strengthening social cohesion, with researchers stressing that policies aimed at fostering trust, connectivity, and community engagement could significantly enhance overall well-being.
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