In a world grappling with economic uncertainty, geopolitical tensions, and rising living costs, some nations continue to stand out for the wellbeing of their citizens, making them one of the happiest countries in the world.

The latest 2025 happiness rankings show that prosperity alone does not guarantee life satisfaction — instead, strong institutions, social trust, and access to quality public services play a defining role.

Nordic countries once again dominate the top spots, underscoring the impact of robust social safety nets, universal healthcare, education systems, and high levels of trust in government.

Below are the 10 happiest countries in the world in 2025 and what sets them apart.

1. Finland – 7.74

Finland leads the global rankings with a score of 7.74. The country consistently performs strongly in measures of social support, low corruption, and work-life balance. Access to nature, high-quality public services, and a strong sense of community contribute significantly to overall life satisfaction.

2. Denmark – 7.52

Denmark follows closely, reflecting its generous welfare model and emphasis on equality. High levels of interpersonal trust and a flexible labor market help sustain both economic stability and personal wellbeing.

3. Iceland – 7.52

Iceland matches Denmark’s score, supported by tight-knit communities and strong gender equality. Despite its small population, the country ranks highly for social cohesion and resilience.

4. Sweden – 7.35

Sweden’s comprehensive welfare state, high environmental standards, and emphasis on work-life balance contribute to its strong performance. Citizens report high levels of institutional trust and personal freedom.

5. Netherlands – 7.31

The Netherlands combines economic prosperity with social inclusiveness. A strong healthcare system, progressive social policies, and high urban livability scores help sustain overall happiness levels.

6. Costa Rica – 7.27

Costa Rica stands out as the highest-ranked Latin American nation. Known for its “pura vida” culture, the country benefits from political stability, strong environmental protections, and a focus on community wellbeing despite lower income levels than many European peers.

7. Norway – 7.26

Norway’s wealth from natural resources is matched by careful governance and investment in public services. High social trust, safety, and income equality continue to underpin its strong ranking.

8. Israel – 7.23

Israel maintains a high happiness score, driven by strong family ties, community networks, and a dynamic economy. Social support systems and cultural cohesion play key roles in reported life satisfaction.

9. Luxembourg – 7.12

Luxembourg combines high income levels with strong public services and safety. As one of the wealthiest countries per capita, it benefits from economic security and a stable political environment.

10. Mexico – 6.98

Mexico rounds out the top 10, reflecting strong family bonds and social connections that bolster life satisfaction. Despite economic and security challenges, social support networks remain a key strength. (Vanguard)