Finland ranks as happiest country in the world, US drops on list

• Finland leads the 2025 World Happiness Report, boasting strong social bonds, natural beauty and comprehensive welfare. Finns prioritize simplicity and being content.
• The U.S. dropped to 24th, its lowest ranking, due to rising social isolation, polarization and economic inequality, highlighting the need for community ties.
• Experts stressed that happiness stems from trust, kindness and social connections, urging nations to foster collective well-being.

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Finland has been named the world’s happiest country for the eighth consecutive year, according to the 2025 World Happiness Report. The report, published on the United Nations’ International Day of Happiness, ranks countries based on how their residents evaluate their lives.

The report found that Nordic countries continue to dominate the rankings. Denmark, Iceland, Sweden and the Netherlands rounded out the top five. Costa Rica and Mexico entered the top ten for the first time, in sixth and tenth place, respectively.

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Measuring happiness

The World Happiness Report evaluates countries based on self-reported life satisfaction, asking respondents to rate their lives on a scale from zero to ten — with ten representing the best possible life they can imagine. Rankings are based on three-year averages of these evaluations.

Researchers also consider six key factors:

• GDP per capita
• Social support
• Healthy life expectancy
• Freedom to make life choices
• Generosity
• Perceptions of corruption

Finland consistently ranked the happiest

Experts pointed to access to nature and a well-developed welfare system as key reasons Finland consistently ranks at the top. While economic factors play a role, researchers said happiness isn’t just about wealth — it’s about trust, connection and knowing people have your back.

Finnish culture also values simplicity, contentment and work-life balance. Nearly 90% of Finns visit a sauna weekly, an activity seen as beneficial for physical and mental health.

Finland’s education system, often ranked among the world’s best, also emphasizes equality, creativity and lifelong learning — which researchers said contribute to overall well-being.

Why did the US drop in the rankings?

The U.S. fell to its lowest-ever ranking, placing 24th in the 2025 report. It was ranked 11th in 2012, but researchers said rising social isolation and political polarization have contributed to the decline.

One key indicator is the rise in dining alone — which has increased by 53% in the past two decades. The report found that sharing meals with others is strongly linked to happiness across cultures.

What does the study reveal about kindness and trust?

The report also explored how trust in strangers impacts happiness.

Researchers deliberately left behind lost wallets to measure return rates. The study revealed that people often underestimated others’ kindness, as individuals returned wallets twice as often as expected in many countries.

What role do social connections play in happiness?

Beyond economic stability, the study found that household size and community ties play a major role in well-being.

In Mexico and much of Europe, households with four to five people reported the highest happiness levels.

In contrast, nearly one in five young adults worldwide reported having no one to rely on for social support, a 39% increase from 2006.

Researchers said declining social trust and loneliness are major challenges affecting mental health globally.

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What can be learned from the happiest countries?

Experts said the findings reinforce that happiness is rooted in trust, kindness and social connection — not just wealth.

Maintaining strong community ties, believing in the kindness of others and engaging in shared activities like meals all contribute to overall well-being.