For the eighth consecutive year, Finland has been ranked as the world’s happiest country, according to the UN-backed World Happiness Report 2025. The Nordic nation once again outperformed others, with experts attributing its success to factors like a strong welfare system, access to nature, and a high level of social trust.
The latest rankings also saw a major shift, with Costa Rica and Mexico breaking into the top 10 for the first time, driven by strong family ties and community connections. Meanwhile, the United States (24th) and the UK (23rd) dropped to their lowest positions on record, reflecting declining happiness levels and growing social polarization.
What Makes People Happier? Study Reveals Key Findings
One of the report’s most eye-opening findings came from an experiment measuring trust in strangers. Researchers deliberately “lost” wallets in different locations and compared how many were returned with people’s expectations. The results? Strangers were twice as kind as people predicted.
Economist John F. Helliwell, one of the report’s authors, noted that people who believe others genuinely care about them tend to be happier. “People are much happier living where they think people care about each other,” he said.
Other key findings from the 13th annual World Happiness Report include:
Sharing meals boosts happiness – Dining together was strongly linked to well-being worldwide.
Household size matters – In Mexico and parts of Europe, families of four to five people reported the highest happiness levels.
Political polarization affects well-being – The study found that declining social trust in the US and some European countries is driving deeper divisions.
The study, published by the University of Oxford’s Wellbeing Research Centre, ranks countries based on self-reported life satisfaction scores on a scale from 0 to 10. The latest rankings are based on data collected over the past three years.
Top 10 Happiest Countries (2025):
Finland
Denmark
Iceland
Sweden
Netherlands
Costa Rica 
(New Entry)
Norway
Israel
Luxembourg
Mexico 
(New Entry)
What’s Behind Finland’s Happiness Streak?
Finland’s consistent ranking at the top comes down to a combination of factors:
- A strong social safety net that provides free healthcare and education.
- A deep connection to nature, with easy access to forests, lakes, and outdoor activities.
- Saunas! Nearly 90% of Finns visit a sauna weekly, which is believed to improve both mental and physical well-being.
Jeffrey D. Sachs, one of the report’s contributors, emphasized that happiness is rooted in trust, kindness, and social connection—qualities that are abundant in Finland and other top-ranking nations.
“In this era of social isolation and political polarization, we need to bring people together again,” added Oxford’s Jan-Emmanuel De Neve, stressing the importance of social bonding in maintaining happiness levels worldwide.
As happiness rankings continue to evolve, the findings highlight one major takeaway: human connection matters more than we think.
