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Many factors are taken into account when ranking the happiness of a country. While wealth obviously plays a major part, other important reasons are perception of corruption, freedom, social support, generosity and healthcare.
Let's take a look at some of the happiest nations, according to World Happiness Report, 2013.
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India
Happiness score: 4.772
Overall rank: 111 out of 156
India is ranked a lowly 111 maybe because the tough economic situation has made the outlook bleak. Other factors in play could be rise in corruption cases, deteriorating infrastructure and bad governance.
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Denmark
Happiness score: 7.693
Overall rank: 1
Denmark, one of the wealthiest economies in the world, enjoys the top spot primarily due to its excellent infrastructure, safety net, good governance and social equality.
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Norway
Happiness score: 7.655
Overall rank: 2
Norway, which has some of the biggest oil and gas reserves in the world, is one of the least unequal countries, provides excellent governance and enjoys low corruption.
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Switzerland
Happiness score: 7.650
Overall rank: 3
Switzerland, which attracts some of the richest investors in the world, is a stable, prosperous and competitive country.
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The Netherlands
Happiness score: 7.512
Overall rank: 4
The Netherlands, one of the richest economies in the world, is an open society, has low corruption and world-class healthcare.
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Sweden
Happiness score: 7.480
Overall rank: 5
Sweden, one of the most liberal countries, has excellent infrastructure, good governance and low corruption.
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Canada
Happiness score: 7.477
Overall rank: 6
Canada, one of the wealthiest countries in the world, is witnessing a boom in economy.
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Finland
Happiness score: 7.389
Overall rank: 7
Finland, one of the most developed countries in the world, is constantly ranked high in Human Development Index.
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Austria
Happiness score: 7.369
Overall rank: 8
Austria, one of the most prosperous countries in the world, has world-class infrastructure, competitive economy and excellent healthcare.
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Iceland
Happiness score: 7.355
Overall rank: 9
Iceland, which has a population of 320,000, is a free-market economy with low corporate taxes.
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Australia
Happiness score: 7.350
Overall rank: 10
Australia, the 12th-largest economy in the world, is also one of the wealthiest.
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Israel
Happiness score: 7.301
Overall rank: 11
Israel, whose financial center is Tel Aviv, has the highest standard of living in the Middle East.
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Costa Rica
Happiness score: 7.257
Overall rank: 12
Costa Rica, which has been ranked as the greenest country in the world, has a good record on Human Development Index.
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New Zealand
Happiness score: 7.221
Overall rank: 13
New Zealand, whose major exports are dairy products, meat and wine, enjoys one of the highest standards of living in the world.
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United Arab Emirates
Happiness score: 7.144
Overall rank: 14
United Arab Emirates, which holds one of the biggest reserves of oil and gas, has one of the highest per capita incomes in the world.
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Panama
Happiness score: 7.143
Overall rank: 15
Panama, which earns a lot from Panama Canal, is one of the fastest growing economies in Central America.
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Mexico
Happiness score: 7.088
Overall rank: 16
Mexico, one of the largest economies in the world, carries out most of its trade with the United States.
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United States
Happiness score: 7.082
Overall rank: 17
United States, the biggest economy in the world, has one of the highest per capita incomes in the globe.
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Ireland
Happiness score: 7.076
Overall rank: 18
Ireland, which is one of the wealthiest countries in the world, is highly ranked for press, economic and political freedom.
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Luxembourg
Happiness score: 7.054
Overall rank: 19
Luxembourg, which has one of the highest per capita incomes in the world, has a population of 524,853.
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Venezuela
Happiness score: 7.039
Overall rank: 20
Venezuela, which has huge gas and oil reserves, is one of the fastest growing economies in the world.
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Belgium
Happiness score: 6.967
Overall rank: 21
Belgium, which has a population of 11 million, is one of the wealthiest countries in the world.
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United Kingdom
Happiness score: 6.883
Overall rank: 22
United Kingdom, one of the main financial centres of the world, is one of the developed countries in the world.
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Oman
Happiness score: 6.853
Overall rank: 23
Oman, whose economy relies to a large extent on oil, fishing and agriculture, is one of the most developed and stable countries in the Middle East.
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Brazil
Happiness score: 6.849
Overall rank: 24
Brazil, one of the fastest growing economies in the world, is a major manufacturing and export powerhouse.
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France
Happiness score: 6.764
Overall rank: 25
France, one of the wealthiest countries in the world, provides excellent healthcare, social security and infrastructure.