Finland once again topped the World Happiness Report's rankings. Meanwhile, Afghanistan, which has faced humanitarian catastrophe since the Taliban regained control in 2020, once again ranked as the unhappiest country in the world. A country's national happiness is determined by measuring its GDP, social support, income, health, freedom, generosity and the absence of corruption. The report was released on Thursday (Mar 20). 

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The United States is at No. 24 as it has earned its lowest ranking yet in the 2025 report. Surprisingly, Israel is at eighth position despite the ongoing war against Hamas and other disturbances faced by the countrymen. India is at 118th place. 

This year, the report has focused on the impact of caring and sharing on people's happiness. The authors have investigated both of these effects: the benefits to the recipients of caring behaviour and the benefits to those who care for others.  

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Nordic countries once again lead the happiness rankings. Finland, Denmark, Iceland and Sweden are still the top four and in the same order.

Professor of Economics at the University of Oxford and editor of the World Happiness Report, Jan-Emmanuel De Neve, said as quoted by Reuters that among the factors that contributed to people's well-being was GDP per capita, wealth distribution, a welfare state that provides psychological stability and a healthy life expectancy.

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De Neve also said the report, which this year focused on the theme of “caring and sharing”, found that sharing meals with others was strongly linked with wellbeing across all global regions.

De Neve said the report also showed a general increase in anxiety, worry and stress around the world. 

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

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John Helliwell, a founding editor of the World Happiness Report, said as quoted by CNN, "People's fellow citizens are better than they think they are, and to realize that will make you happier, of course, but it’,l also change the way you think about your neighbors." 

“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,” added Helliwell, who is an economics professor emeritus at the University of British Columbia. 

The annual World Happiness Report is based on data from US market research company Gallup, analysed by a global team now led by the University of Oxford. It was launched in 2012 to support the United Nations' sustainable development goals. 

(With inputs from agencies)