It’s another win for Finland, which has been named the world’s happiest country for the eighth year in a row. But this year’s World Happiness Report also saw a shake-up, with Mexico and Costa Rica making their debut in the top 10.

Published annually on the UN’s International Day of Happiness, the report ranks over 140 countries based on how residents rate their quality of life. Finland secured the top spot with an average score of 7.74, followed by Denmark, Iceland, Sweden, and the Netherlands. Mexico landed at number 10, marking its highest ranking in the report’s history.

Jan-Emmanuel De Neve, a professor at the University of Oxford and editor of the report, attributes Finland’s success to strong social connections, economic stability, and a deep appreciation for nature. “They’re not the happiest in a joyful, dancing-in-the-streets way, but they’re very content with their lives,” he explains.

Meanwhile, Mexico’s rise reflects the importance of community and social trust. Latin American countries rank high in shared meals and social connectedness—factors linked to greater well-being. “They spend time dining and lunching with others, having friends, and it’s not all cannibalized by social media,” De Neve notes.

The United States, on the other hand, fell to its lowest ranking yet at number 24. Researchers point to growing wealth inequality and declining social trust as key factors behind the drop.

The report, produced by the Wellbeing Research Centre at the University of Oxford alongside Gallup and other partners, highlights the role of social interactions in happiness. According to researchers, people who believe in the kindness of others and engage in communal activities tend to experience higher well-being.

Here are the world’s 10 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