For the eighth consecutive year, Finland has maintained its position as the happiest country in the world, according to the 2025 World Happiness Report. However, the outlook is less optimistic for the United States, which has dropped to its lowest ranking yet—No. 24.

The annual report, released on March 20 in observance of the United Nations International Day of Happiness, highlights growing concerns about declining happiness and social trust in the U.S. and parts of Europe. These trends have contributed to increased political polarization and opposition to traditional institutions.

Despite these challenges, the report also brings encouraging news: research indicates that people tend to be kinder than commonly believed. John Helliwell, a founding editor of the World Happiness Report, emphasized that recognizing the goodwill of others can enhance overall happiness and reshape perceptions of social interactions.

The rankings are based on data from over 140 countries collected through the Gallup World Poll, evaluating life satisfaction from 2022 to 2024. Factors influencing happiness scores include GDP per capita, social support, life expectancy, freedom, generosity, and perceptions of corruption.

The Happiest Countries

Nordic nations continue to lead in happiness, with Finland securing the top spot once again. Denmark, Iceland, and Sweden follow closely behind, with Norway ranking seventh. Experts attribute this to strong social support systems, low inequality, and a cultural emphasis on trust and community.

Additionally, two Latin American countries—Costa Rica (No. 6) and Mexico (No. 10)—entered the top 10 for the first time. Analysts credit their strong social networks and economic optimism for their high rankings. Other top-ranking nations include the Netherlands (No. 5), Israel (No. 8), and Luxembourg (No. 9).

A Decline in U.S. Happiness

The United States’ ranking has continued to fall, with young Americans reporting lower levels of life satisfaction. The report highlights that individuals under 30 feel less supported by family and friends and more uncertain about their future. The United Kingdom (No. 23) also recorded its lowest happiness rating since 2017, while Canada remains in the top 20 at No. 18 despite a decade-long decline.

Helliwell suggests that fostering positive social interactions and focusing on community engagement could help reverse these trends. “A simple shift in perspective—seeing others in a more positive light—can significantly impact happiness,” he noted.

World’s 20 Happiest Countries in 2025:

1. Finland

2. Denmark

3. Iceland

4. Sweden

5. Netherlands

6. Costa Rica

7. Norway

8. Israel

9. Luxembourg

10. Mexico

11. Australia

12. New Zealand

13. Switzerland

14. Belgium

15. Ireland

16. Lithuania

17. Austria

18. Canada

19. Slovenia

20. Czech Republic

Least Happy Countries

Afghanistan remains the lowest-ranked country (No. 147), followed by Sierra Leone, Lebanon, Malawi, and Zimbabwe, which round out the bottom five.