Finland has been named the world’s happiest country for the eighth consecutive year, according to the latest World Happiness Report. The study, released by the Wellbeing Research Centre at the University of Oxford, highlights the continued dominance of Nordic nations in global happiness rankings.
Why is Finland the happiest country again?
Finland continues to hold its #1 ranking in the World Happiness Report, with a score of 7.741 out of 10 in the latest 2025 edition. This consistent top ranking is attributed to strong social trust, a robust welfare system, and an exceptional quality of life.
One of the key reasons behind Finland’s happiness is its strong sense of community and mutual trust among citizens. During the Covid-19 pandemic, Finns felt a high degree of personal freedom, allowing them to make independent choices without feeling restricted. Additionally, there was minimal suspicion of government corruption, reinforcing confidence in institutions—both factors that contribute significantly to national well-being.
Nordic Nations lead the way
Following Finland, Denmark, Iceland, and Sweden secured the second, third, and fourth positions respectively, reinforcing their status as some of the happiest places to live. These countries consistently rank high in social support, trust in institutions, and community well-being, all of which play a significant role in life satisfaction.
Costa Rica and Mexico enter the top 10 while US drops
Costa Rica and Mexico made a notable entry into the top ten for the first time, ranking sixth and tenth, respectively. Their inclusion underscores the role of cultural and social cohesion in shaping national happiness levels, with strong community ties and lifestyle balance contributing to overall well-being.
In contrast, major industrial nations have seen a decline in their rankings. The United States fell to 24th place, its lowest position to date, while the United Kingdom ranked just ahead at 23rd. Experts suggest economic pressures, political uncertainty, and weakening social bonds as key reasons for the decline in happiness in these countries.
Sustained acts of kindness post-pandemic
The report also highlights a sustained increase in acts of kindness globally, a trend that began during the Covid-19 pandemic and has continued. Acts of generosity, such as donations and volunteering, remain more than 10% higher than pre-pandemic levels, suggesting that a sense of social responsibility has endured.
Key factors influencing happiness
Beyond economic factors, social connections, trust, and community engagement play a significant role in determining national happiness. The study found that societies where people share meals frequently and have reliable support networks report higher life satisfaction across different regions. John Helliwell, a founding editor of the World Happiness Report and professor emeritus of economics at the University of British Columbia, emphasized the importance of positive social perceptions in shaping happiness levels.
“People’s fellow citizens are better than they think they are, and to realize that will make you happier, of course, but it’ll also change the way you think about your neighbours,” said Helliwell. “And so you’re more inclined to think of a stranger in the street as simply a friend you haven’t met and not somebody who poses a threat to you.”
As nations navigate growing economic and social challenges, the World Happiness Report serves as a reminder of the crucial role of social bonds and trust in fostering well-being on a national scale.
