For the eighth consecutive year, Finland has retained its position as the world’s happiest country, according to the 2025 World Happiness Report.

The report, released annually on the United Nations’ International Day of Happiness, ranks nations based on residents’ self-assessed quality of life, using a scale from 0 to 10.

This year, Finns rated their lives at an average score of 7.74, maintaining their dominance at the top of the global happiness index.

The Nordic nation was followed by Denmark in second place, Iceland in third, Sweden in fourth, and the Netherlands in fifth. Notably, Costa Rica and Mexico entered the top 10 for the first time, ranking sixth and tenth, respectively. In contrast, the United States dropped to 24th place—its lowest ranking ever—continuing a downward trend that saw it exit the top 20 for the first time last year.

What makes Finland so happy?

Experts attribute Finland’s sustained happiness to factors such as social trust, economic equality, and a strong sense of community. Jan-Emmanuel De Neve, one of the researchers behind the report, emphasised the role of economic equity in Finland’s success.

“In these Nordic Scandinavian countries, a rising tide lifts all boats, so the levels of economic inequality are much less, and that reflects in well-being as well,” De Neve explained. “In Finland, most people will rate themselves as seven or an eight, whereas if you look at the distribution of well-being in the States, there’s a lot of 10s out there, but there’s a lot of ones as well.”

Another key factor contributing to Finland’s top ranking is the nation’s ability to find contentment in simplicity. “They’re content with less,” De Neve noted. “They had less, and they’re more content with less. They’re happier with what they’ve got.”

Social trust and happiness

Beyond economic factors, the report highlighted the strong link between social trust and happiness. Researchers found that believing in the kindness of others significantly boosts both individual and collective well-being. In Finland and other Nordic nations, people are more likely to believe that a lost wallet will be returned, a belief that aligns with real-world behavior.

“The more you believe in the kindness of others, or in other words, are socially trusting, the higher your individual well-being and the higher collective well-being,” De Neve stated.

Costa Rica and Mexico’s entry into the top 10 also supports this finding. Researchers observed that Latin American countries ranked highly in social connectedness, particularly in shared meals with family and friends.

“They do spend time dining and lunching with others, having friends, and it’s not all cannibalized by social media, and so we picked this up in the data,” De Neve added.

Ghana drops in happiness ranking

Ghana’s ranking in the 2025 World Happiness Report has declined, with the country now placed 125th out of 147 nations. This marks a drop from its 120th position (out of 143 countries) in 2024, reflecting worsening happiness levels among Ghanaians.

The decline raises concerns about economic hardships, governance challenges, and overall social well-being. Ghana now ranks below Burkina Faso (120th), Benin (121st), and Somalia (122nd) but remains ahead of Togo (126th) and Liberia (129th).

Happiest Countries in Africa

On the African continent, Mauritius emerged as the happiest country, ranking 78th globally. It was followed by:

• South Africa – 95th
• Mozambique – 96th
• Gabon – 97th
• Côte d’Ivoire – 98th
• Congo – 100th
• Namibia – 103rd
• Cameroon – 104th
• Nigeria – 105th
• Senegal – 107th
• Mauritania – 114th

Ghana’s lower ranking suggests that the country faces increasing socio-economic difficulties affecting the overall quality of life.

Addressing these challenges through better governance, economic reforms, and strengthened social support systems could improve the nation's position in future reports.