Nordic countries lead the world happiness rankings – again.
Finland tops the annual list followed by Iceland, Denmark, and Costa Rica – the first time a Latin American country has made it into the top five. Sweden and Norway complete the top six, followed by the Netherlands, Israel, Luxembourg, and Switzerland to complete the top ten.
Australia sits in 15th place. However, when ranking the happiness of under-25s, the report places Australia – along with Canada, the US, and New Zealand – near bottom (122-133 out of 136).
The World Happiness Report – published by the UN Sustainable Development Solutions Network – is based on six key factors – GDP per capita, social support, healthy life expectancy, freedom, generosity, and government/business corruption.
The primary source is the Gallup World Poll, which conducts nationally representative surveys of approximately 1,000 people per country annually. People are asked to imagine a ladder with steps numbered from 0 (worst possible life) to 10 (best possible life) and indicate where they stand.
The Nordic countries regularly top the list due to a mix of high institutional trust, robust welfare states, and low inequality. These nations excel in providing free healthcare and education, good public transportation, and ensuring basic needs are met – which creates a sense of security and wellbeing.
Looking at changes in happiness from the 2006–2010 base period to 2023–2025, most of the 21 countries that have gained a point or more on the 0–10 life evaluation scale are in Central and Eastern Europe.
In contrast, most Western industrial countries are now less happy than they were between 2005 and 2010. Fifteen of them have recorded significant drops, compared to four with significant increases.
Negative emotions are becoming more common in all global regions. Worry rose more broadly for the young. However, positive emotions continue to be twice as frequent as negative emotions.
The report also shows that life satisfaction is highest in countries that record low rates of social media use and lower in countries where there are higher rates of use. The report notes that Australia has increased the age limit for social media platforms from 13 to 16. The report encourages other countries to consider following suit.