Finland has been ranked as the happiest country for the third year in a row in the 2025 World Happiness Report.
Although Nordic countries like Denmark, Sweden and Norway usually perform well, these countries have shown a slight decline in their happiness scores over time.
Out of the top 20 happiest countries only seven have become happier over the years.
Iceland sees significant increase in happiness:
Iceland, ranked the third happiest country, is highlighted as one of the countries that has seen a significant increase in happiness with a 9.1% improvement since the first index in 2008.
But are you also thinking about what the reason for this increasing happiness is?
People living in Iceland believe that the factors contributing to this rise in happiness include the country's natural environment, gender equality and a strong sense of resilience.
The country has a relatively small population of just under 400,000 people and despite this the country continues to invest in infrastructure, progressive social policies and tourism.
The country offers a generous parental leave policy where both parents can share up to 12 months of leave, regardless of maritial status or sexuality.
Additionally, Iceland provides early education through kindergarten starting at age two, which supports working parents.
It is pertinent to note that Iceland's government has been led by women and Iceland was the first country to elect a democratically chosen female president in 1980.
Over the past decades, Iceland has seen a significant increase in tourism, about six times the population of the country.
As a result, there is also a rise in the number of restaurants, bars and cafes in Iceland which has led to more vibrant and lively city areas.
