Mexico is a Happy Place

Mexico’s turnaround in the happiness rankings is noteworthy. The United Nations’ 2025 World Happiness Report saw the nation jump from No. 25 in 2023 to No. 10 in 2024. It retains the same ranking this year.

The biggest drivers of happiness, according to Ipsos, are family and children, feeling appreciated and loved, and feeling in control of one’s life. Age, income and where one lives all play a role in determining happiness.

For the record, the U.S. dropped out of the top 20 for the first time in 2024 and fell further in the rankings of the U.N.’s World Happiness Report this year. The decline is partly due to younger Americans feeling less free in life choices and less optimistic about the future. Canada, despite a decades-long decline, remains in the top 20 at No. 18. Rising inflation and increased living costs have both Americans and Canadians feeling less happy these days.

The reasons for Mexico’s happiness are easy to explain: strong family bonds, a sense of appreciation, prioritizing mental well-being over material wealth, and daily shared meals that foster quality time together. Tacos, tequila and mariachi music are a bonus.

The secondary factors supporting happiness in Mexico include, in descending order:

- Feeling my life has meaning
- Friends
- Physical health and well-being
- Housing situation or living conditions
- Relationship with a partner
- Job
- Religious faith or spiritual life

According to John Helliwell, founding editor of the World Happiness Report and professor emeritus at the University of British Columbia, “the happiest countries tend to see strangers as potential friends rather than threats.” While emphasizing the importance of feeling part of a larger, supportive community, he also said that prioritizing human connections over material wealth is increasingly important. “Talking less and listening more fosters cooperation,” Helliwell stated. “Negativity poisons happiness.”

Does money bring happiness? The Ipsos analysis shows that, while it may not be the biggest driver for happiness, it is the biggest factor when it comes to making people unhappy. “My financial situation” is singled out more frequently than anything else as a reason for feeling unhappy these days. The side effect of not having enough money is unhappiness.
While richer countries tend to be happier, several Latin American countries continue to outperform expectations based on income alone. Residents of Mexico, for example, report life satisfaction that is nearly equal to that of the U.S., despite having less than half the income.

Age also plays a role. Happiness is lowest in middle age, but people reach the happiest point in their adult lives in their 60s and 70s.

For many, the best is yet to come. This is true in Mexico and especially true in Los Cabos, one of the happiest precincts within Mexico.