The 2025 Global Passport Index (GPI) underscores that Quality of Life (QoL) is more than just a measure of economic wealth; it is a comprehensive reflection of the health, education integration, security, and overall well-being experienced by nation’s residents. This subindex considers crucial factors such as universal healthcare access, quality education, economic stability, social integration, mental health services, and work-life balance — elements that collectively shape the everyday lives of citizens and residents. The rankings show that countries excelling in these dimensions not only provide their people with the tools for a healthy and fulfilling life but also offer greater opportunities for personal and professional growth. The QoL dimension recognizes that the strength of a passport is not merely defined by mobility but by the ability of a nation to provide its citizens with security, support, and a high standard of living within its borders.
In 2024, the GPI reveals distinct regional patterns in QoL performance. Nordic countries such as Sweden, Finland, and Denmark continue to set the global standard due to their robust welfare systems, accessible healthcare, gender equality, and emphasis on mental health and work-life balance. These nations invest heavily in public services and promote a culture of balance and inclusivity, leading to consistently high rankings. In Southern Europe, Portugal and Spain show significant improvements in their QoL scores, driven by economic recovery, enhanced public services, and the benefits of favorable climates, Mediterranean diets, and strong social cohesion.
In contrast, the United States has experienced a significant decline, underscoring systemic challenges including limited healthcare accessibility, increasing income inequality, rising security concerns, mental health crises, and a pervasive work-life imbalance. Similarly, countries like New Zealand and Switzerland are grappling with high living costs, driven primarily by soaring housing prices, which have strained affordability and contributed to their diminished rankings in quality-of-life assessments.
These trends highlight the critical role of holistic social policies and inclusive governance in sustaining and improving quality of life, ultimately influencing a passport’s value beyond mere travel freedom.
The Nordic Exceptionalism: A Model of Quality of Life and Well-Being
Joseph E. Stiglitz, Nobel Prize-winning economist, stated in 2015: “The Nordic countries are proof that you can build prosperous, competitive economies while ensuring that the benefits of growth are broadly shared across society.”1 This statement encapsulates the essence of the Nordic welfare state, which seamlessly blends prosperity, equity, and social well-being.
It is unsurprising that Sweden (1st), Finland (2nd), Denmark (4th) and Norway (8th) consistently achieve top rankings in global quality of life indexes. Their comprehensive systems of healthcare, education, family-friendly policies, and cultural values reflect a deep societal commitment to human well-being. Various international reports, such as the World Happiness Report (WHR), the Organization for Economic Co-operation and Development (OECD) Better Life Index, and the Human Development Index (HDI), highlight the success of these nations in delivering economic prosperity, social equity and individual fulfillment.
The Nordic welfare state is characterized by universal healthcare, free education, and strong social safety nets. According to the OECD Better Life Index, these countries allocate a significant portion of their GDP to public services: for example, Sweden spends 11.4% of its GDP on healthcare.2 In education, Sweden, Denmark, Finland, and Norway rank among the top for public spending on education, often exceeding 6% of GDP and well above OECD average.3 Such investments ensure that healthcare and education are accessible to all, reducing disparities and promoting social mobility.
Not only do these countries allocate a significant portion of their GDP to healthcare, education, and social welfare, but they also invest wisely and efficiently, achieving superior outcomes. This contrasts sharply with countries like the United States, which spends a larger share of its GDP on healthcare and education yet delivers far worse results in terms of accessibility, equity, and overall quality of services.
Additionally, the Nordic countries recognize that mental health is as critical as physical health. Finland’s mental health strategy, as outlined in the National Mental Health Policy 2020-2030, focuses on integrating mental health services within primary care and promoting mental health education in schools.4 Denmark’s Mental Health Foundation emphasizes early intervention and mental health promotion in the workplace, schools, and communities. According to the World Health Organization (WHO), mental health services in Denmark are among the most comprehensive, with a focus on prevention, outpatient care, and community-based support. For instance, the government launched a 10-year plan in 2022 to improve psychiatry and mental health in Denmark, identifying children and young people, and adults with severe mental health issues, as particular target groups. The plan includes 19 objectives, along with a set of proposed indicators to monitor progress over time.5
This emphasis on mental health is reflected in outcomes: Nordic countries consistently report lower levels of stress and higher levels of life satisfaction. The World Happiness Report 2024 ranks Finland, Denmark, Iceland and Sweden as the top four happiest countries, with Norway also in the top 10.6 The correlation between comprehensive mental health services and overall happiness is evident in these findings.
When it comes to fiscal policies, the welfare state in the Nordic countries is underpinned by progressive taxation policies that ensure higher earners contribute a greater proportion of their income in taxes. In Norway, Finland and Sweden, these contributions play a pivotal role in funding comprehensive social services and effectively reduces income inequality and promotes social equity.
Unsurprisingly, income inequality in the Nordic countries, measured by the Gini coefficient, consistently ranks among the lowest in Europe significantly below the EU average of 0.30, these countries achieve a more equitable distribution of wealth (see fig. 2). This perceived fairness in income distribution fosters high levels of social trust, reinforcing a sense of solidarity and collective well-being within Nordic societies.
Furthermore, the Nordic countries are global leaders when it comes to balancing work, family, and personal well-being. Concepts like “lagom”7 in Sweden and “hygge”8 in Denmark are more than just words; they reflect principles that shape everyday life and are reinforced by policies such as generous parental leave and flexible work arrangements.
In Sweden, the principle of “lagom,” meaning “just the right amount,” encourages moderation and equilibrium. Excess is discouraged, and efficiency during working hours is prioritized so individuals can leave work on time to focus on their families, hobbies, and personal well-being. Similarly, Denmark’s concept of “hygge” emphasizes comfort, coziness, and quality time with loved ones. It encourages people to slow down, connect with others, and enjoy the simple pleasures of life, whether that’s sharing a meal or enjoying an evening by the fire.
Work-life balance is not just an aspiration in the Nordic countries; it is a way of life. Flexible work arrangements are commonplace, with employees able to adjust their schedules, work part-time, or work remotely when needed. The focus is on productivity rather than long working hours. People are encouraged to leave the office on time, reflecting a belief that time spent with family or on personal activities is essential to a fulfilling life. This approach not only reduces stress but also increases job satisfaction and enhances overall mental and physical well-being. Nordic workers are among the most productive in the world, with Norway and Denmark ranking among the top globally in terms of GDP per hour worked, proving that balance and economic performance can go hand in hand.9
The OECD’s Work-Life Balance Index ranks Denmark and Norway among the top countries globally for work-life balance, with less than 2% of employees working long hours.10
Flexible work arrangements, generous parental leave, and subsidized childcare allow parents to balance their professional and family lives effectively.
Additionally, these nations have some of the world’s most generous parental leave policies. In Sweden, parents are entitled to 480 days of paid parental leave, which can be shared between both parents. Importantly, 90 days are reserved exclusively for each parent to encourage fathers to participate actively in childcare. Norway offers up to 49 weeks of leave at full pay or 59 weeks at 80% pay, including a “father’s quota” that ensures men take on equal caregiving responsibilities. Iceland’s system is even more progressive, offering 12 months of parental leave split equally between both parents, with no option to transfer leave from one partner to another. Denmark and Finland also provide flexible, generous policies that allow parents to adjust their schedules in ways that suit their family’s needs. These policies promote not only work-life balance but also gender equality by enabling women to maintain their careers while men actively participate in raising their children.11
Such policies contribute to higher rates of female workforce participation, which stand at over 70% in all Nordic countries.12
The success of the Nordic countries in achieving work-life balance, gender equality, and economic stability serves as a powerful example for the rest of the world. Their ability to create societies where people can thrive professionally while enjoying meaningful personal lives is deeply rooted in cultural values and supported by forward-thinking policies. Concepts like “lagom” and “hygge” are not simply cultural ideals but tangible reflections of societies that prioritize well-being, equality, and trust.
Another defining feature of the Nordic experience is the deep cultural and physical connection to nature. The concept of ‘friluftsliv’ (which translates to ‘open-air living’) is integral to Nordic lifestyles. Whether hiking through Finland’s vast forests, skiing in Norway’s fjords, or cycling through Denmark’s green urban spaces, nature is woven into daily life.
The chart below shows that Nordic consistently have higher rates of regular exercise compared to the EU average. Iceland leads with over 75%, followed closely by Finland (72%) and Sweden (70%). Norway and Denmark also show strong participation, just below 70%. In contrast, the EU average lags significantly at around 45%.
This disparity highlights the influence of cultural values, such as a strong outdoor lifestyle and work-life balance, along with public health policies that prioritize access to recreational spaces and sports facilities. These factors collectively contribute to higher physical activity levels in Nordic countries, emphasizing the role of environmental support and lifestyle balance in promoting regular exercise.
With their extensive forest cover and commitment to sustainability, these nations exemplify how a green environment also directly enhances quality of life. Finland and Sweden, where forests cover approximately 75% and 70% of the land (chart below), respectively, provide ample opportunities for outdoor activities such as hiking, cycling, and skiing. These forests are not just landscapes; they are part of everyday life, offering accessible spaces for exercise and recreation. This strong connection to nature helps explain why Nordic countries have such high exercise rates (75% in Iceland and 70% in Sweden) far exceeding the EU average of 45%.
Nordic cities such as Copenhagen, Stockholm, and Oslo further enhance this relationship between nature and quality of life. Consistently ranked among the top in the Green City Index 2022 (table below), these cities prioritize urban greenery, cycling infrastructure, and clean air. In Copenhagen, extensive bike paths and public parks make it easy for residents to incorporate exercise into their daily routines. These cities demonstrate how thoughtful urban planning can seamlessly integrate nature into daily life, promoting healthier and happier populations.
This connection to nature is supported by the legal principle of ‘allemannsretten’ (the right to roam)13, which allows people to access and enjoy natural landscapes regardless of land ownership. This legislation promotes outdoor activity, reduces stress, and boosts mental well-being. A study by White et al. from the University of Exeter underscores this connection, demonstrating that spending at least 120 minutes per week in natural environments (whether in parks, forests, or other green spaces) significantly enhances mental health and well-being14.This benefit holds true across various demographics, including age, gender, income, and health status, highlighting the universal importance of nature.
In addition to welfare policies and connection to nature, certain shared cultural values enhance the quality of life in Nordic societies. These include:
Trust and Social Cohesion: social trust is a crucial factor in the success of Nordic societies. Citizens generally believe that most people can be trusted, which reduces social friction and promotes cooperation. This trust extends to public institutions, including the police, judiciary, and government. The high levels of social trust create an environment where people feel safe, supported, and connected to their communities. This sense of solidarity reinforces social cohesion and reduces the anxieties commonly found in more fragmented societies. High levels of social trust underpin Nordic societies. According to the World Values Survey (2020), over 70% of Nordic citizens trust their fellow citizens and public institutions, compared to an average of 40% in other Western countries. This trust reduces crime, corruption, and social tension
The Nordic countries are also known for having some of the highest levels of trust in institutions globally (chart below). This trust encompasses key institutions such as government, judicial systems, police, and public services.
Inclusivity and gender equality: Another pillar supporting Nordic happiness is the high sense of autonomy and freedom experienced by citizens. Policies that promote gender equality, work-life balance, and personal choice empower individuals to live fulfilling lives. The ability to make independent decisions about one’s career, education, and personal life fosters a strong sense of self-determination. This autonomy is further enhanced by societal norms that value equality and individual rights, allowing people to pursue their goals without undue restrictions or societal pressure. The Global Gender Gap Report 2022 ranks Iceland, Finland, Norway, and Sweden among the top 5 countries for gender equality (chart below).
Notably, over the past five years, Nordic countries have demonstrated a strong commitment to enhancing their citizens’ quality of life through progressive legislation addressing social welfare, environmental sustainability, and public health. Denmark’s Climate Act set an ambitious goal of reducing greenhouse gas emissions by 70% by 2030 compared to 1990 levels, with the aim of achieving climate neutrality by 2050, reflecting a dedication to environmental stewardship and future well-being.15 In Finland, the Transgender Rights Legislation removed the requirement for sterilization and psychiatric diagnosis to change legal gender, promoting human rights and individual autonomy16.Norway’s Mental Health Act Amendments enhanced patient rights by emphasizing voluntary treatment and limiting coercive practices, thereby improving mental health care quality.17 Sweden’s Parental Leave Equality Amendment expanded reserved parental leave to ensure a more equitable division of childcare, reinforcing gender equality and work-life balance18. Additionally, Iceland’s Equal Pay Certification Law requires companies to prove gender pay equity, addressing workplace inequality19. These measures collectively illustrate the Nordic commitment to fostering inclusive, equitable, and sustainable societies, continually enhancing the well-being of their populations through forward-thinking policy initiatives.
It is also important to mention that despite popular misconceptions, several myths about Nordic unhappiness (related to weather, suicide rates, population size, and homogeneity) have little basis in fact. First, while the Nordic countries experience long, cold, and dark winters, research shows that the weather’s impact on life satisfaction in these countries is minimal, as people adapt to their climate and seasonal patterns.20 Second, although Nordic countries historically have had higher suicide rates, these have significantly declined since the 1970s and now align with the European average21. Studies indicate that social capital and quality of government contribute to both higher life satisfaction and lower suicide rates22. Third, the notion that Nordic happiness is due to small, homogenous populations is unfounded. Research finds no correlation between a country’s population size or homogeneity and its happiness levels23. In fact, Nordic countries are increasingly diverse, 19% of Sweden’s population is foreign-born and still maintain high levels of social trust due to effective institutions21.Finally, immigrants in Nordic countries report happiness levels similar to those of the native-born population, suggesting that robust welfare systems and quality institutions benefit all residents, regardless of origin.21
In sum, the positive impact of these elements and legislative measures is reflected in the Quality of Life dimension of the 2024 GPI, where the Nordic countries consistently rank among the top performers. This demonstrates how forward-thinking policies in social welfare, equality, and environmental sustainability directly enhance overall well-being and social cohesion. As highlighted by reports from the OECD, WHO, World Happiness Report, and the World Economic Forum, theNordic exceptionalism continues to set global benchmarks for a balanced, long and fulfilling life.
Quality of Life in Portugal and Spain: The Role of Weather, Diet, Exercise, and Social Integration
Spain (5th) and Portugal (6th) are also consistently celebrated for their high quality of life, rooted in reliable welfare systems, favorable weather, healthy lifestyles, and vibrant social cultures. These elements come together to form a holistic approach to well-being, supported by data and insights from international organizations such as the OECD, WHO, Eurofound, and the World Happiness Report.
The combination of accessible healthcare, quality public education, a Mediterranean diet, active lifestyles, social integration, and climate significantly contributes to the happiness and health of their populations.
The welfare systems of Portugal and Spain ensure that citizens have access to essential services such as healthcare, education, and social security. Portugal’s Serviço Nacional de Saúde (SNS) covers approximately 70% of healthcare costs, while Spain’s Sistema Nacional de Salud (SNS) offers universal healthcare24, with Spain allocating 9.1% of its GDP to healthcare services wich is well above the EU average.25 These systems contribute to the high life expectancies of 82.3 years in Portugal and 83.1 years in Spain.26
Education is free and compulsory until age 16 in both countries, contributing to literacy rates of 96% in Portugal and 99% in Spain.27 Investments in early childhood education and vocational training enhance social mobility and reduce inequality, ensuring that younger generations have access to opportunities for personal and professional development.
Another of the standout elements of life in Portugal and Spain is the Mediterranean diet, recognized by UNESCO as an Intangible Cultural Heritage of Humanity27.This diet emphasizes fresh vegetables, fruits, whole grains, olive oil, legumes, fish, and moderate consumption of dairy and wine. Numerous studies highlight the health benefits of the Mediterranean diet. Research published in the New England Journal of Medicine found that following a Mediterranean diet reduces the risk of heart disease by 30%28. This dietary pattern, rich in antioxidants and healthy fats, also contributes to increased life expectancy by lowering the rates of cancer, diabetes, and cardiovascular diseases.29 Additionally, a study from the University of Las Palmas indicates that the Mediterranean diet is associated with a lower incidence of depression and cognitive decline, further emphasizing its role in promoting overall mental and physical well-being.30
Both Portugal and Spain embrace traditional eating patterns, such as long, leisurely meals and family gatherings. The social aspect of dining enhances emotional well-being and strengthens community bonds.
Physical activity is also an essential component of the high quality of life in Portugal and Spain. The combination of favorable weather, outdoor infrastructure, and cultural traditions promotes active lifestyles. According to the Eurobarometer on Sport and Physical Activity (2022), Spain ranks among the top European countries for regular physical activity, with over 55% of the population engaging in weekly exercise.31
Physical activity significantly enhances the quality of life in Portugal and Spain, where favorable climates, well-developed outdoor infrastructures, and cultural traditions encourage active lifestyles. The World Health Organization (WHO) emphasizes that regular physical activity reduces the risk of chronic diseases, including cardiovascular diseases, diabetes, and certain cancers.32 In Spain, a study analyzing data from the National Health Surveys linked to mortality records up to December 2022 found that replacing sedentary time with physical activity significantly reduced all-cause, cardiovascular, and cancer mortality risks.33
Regarding obesity rates, the WHO European Regional Obesity Report 2022 indicates that Portugal and Spain have adult obesity prevalence rates of approximately 27.0% and 19.0%, respectively.34 These figures are below the European average, reflecting the positive impact of active lifestyles and healthy dietary habits in these countries.
This underscores the importance of maintaining active lifestyles and healthy diets to combat rising obesity trends.
The Mediterranean climate of Portugal and Spain, characterized by mild winters and warm, sunny summers, plays a crucial role in enhancing quality of life. Portugal enjoys over 300 days of sunshine annually35, particularly in regions like the Algarve. Spain, with diverse climates from the sunny Andalusia to the temperate Basque Country, provides year-round opportunities for outdoor living.
Sunlight in southern European countries like Portugal and Spain provides an important health advantage by helping people maintain optimal vitamin D levels. With abundant sunshine year-round, residents benefit from natural vitamin D production, which supports strong bones, a healthy immune system, and better mental well-being. This vitamin helps prevent conditions like osteoporosis and reduces the risk of diseases such as heart disease, certain cancers, and autoimmune disorders.36
Sunlight also boosts serotonin levels, improving mood and reducing stress. Populations in sunnier southern European countries, such as Spain and Portugal, generally experience lower rates of Seasonal Affective Disorder (SAD) compared to those in northern regions. This difference is largely due to increased sunlight exposure, which enhances vitamin D production, a nutrient vital for mood regulation and mental health. In contrast, regions with less sunlight face higher rates of vitamin D deficiency and related health issues.37 The sunny Mediterranean climate of southern Europe, combined with an outdoor lifestyle, promotes overall health and quality of life, making regular sun exposure a simple yet powerful way to stay healthy.
Social cohesion and integration also play pivotal roles in the happiness and well-being of Portuguese and Spanish societies. These values are deeply embedded in their cultural practices, family structures, and urban designs, which foster a strong sense of belonging and unity. According to the European Quality of Life Survey38, both nations demonstrate robust social networks that contribute significantly to their citizens’ emotional resilience and quality of life.
Festivals and communal gatherings are at the heart of social life in Portugal and Spain, strengthening community bonds and cultural pride. These celebrations not only preserve cultural heritage but also reinforce a collective identity, providing emotional support and reducing feelings of isolation. Urban design in cities like Lisbon, Madrid, Porto, and Barcelona also promotes social integration. Public spaces such as plazas, parks, and outdoor cafés are designed to encourage social interaction. These areas serve as meeting points for residents of all ages, fostering a sense of community and inclusion.
A distinctive feature of Spanish and Portuguese societies is multigenerational living, where multiple generations of a family reside under one roof or in close proximity. This tradition is deeply rooted in cultural values and has been further reinforced by economic and social factors. In Spain, approximately 42% of young adults aged 25-34 live with their parents, according to the Spanish National Statistics Institute (INE, 2022).39 This is one of the highest rates in Europe and can be attributed to several factors, including high youth unemployment rates (around 28% in 2022, according to Eurostat) and the lasting effects of the 2008 financial crisis and the COVID-19 pandemic, which have made financial independence challenging for young people. Rising housing costs in urban centers like Madrid, Barcelona, Lisbon and Porto make shared living a practical solution.
The concept of “familismo” emphasizes loyalty, solidarity, and mutual support among family members. Spanish culture places a high value on family unity and caregiving, with grandparents often playing a crucial role in childcare. A Eurofound report (2021) indicates that 67% of Spanish grandparents regularly care for their grandchildren.40 Living with extended family fosters emotional resilience and combats loneliness, particularly among the elderly and young adults.41 The World Health Organization (WHO, 2021) highlights that strong family networks are linked to better mental health outcomes.42
Multigenerational living offers numerous advantages that contribute to the well-being and stability of families. Family support reduces anxiety, depression, and stress, creating a nurturing environment for all members. Grandparents assist with childcare while younger adults care for aging relatives, fostering intergenerational care.43 Sharing household expenses alleviates financial burdens, ensuring greater economic resilience.
The emphasis on social cohesion in Portuguese and Spanish societies reflects a holistic approach to well-being, where cultural traditions, urban planning, and family structures come together to support individuals and communities. Whether through vibrant festivals, thoughtfully designed public spaces, or the enduring tradition of multigenerational living, these societies exemplify how strong social bonds contribute to happiness, resilience, and overall quality of life. As modern challenges persist, these practices offer valuable lessons on fostering integration and solidarity in diverse and dynamic communities.
In Spain, as mentioned, the tradition of multigenerational living is a cornerstone of its social fabric. Families often share homes or live in close proximity. This arrangement not only enhances emotional resilience but also nurtures a deep sense of interdependence and care. These shared experiences create a society where individuals feel a strong connection to their immediate environment, reflected in the high percentage of people who feel tied to their local community.
Unsurprisingly, the chart below reveals that Spain stands out as one of the countries with the highest levels of connectedness to their country (85%), local community (81%), and the broader world (73%). This strong sense of belonging across all scales is deeply intertwined with Spain’s unique social fabric, which is rooted in close-knit family structures, vibrant communal traditions, and a culture that values interpersonal relationships.
Moreover, Spain’s global connectedness, as indicated by 73% feeling linked to the wider world, is a testament to its historical openness and cosmopolitan outlook. Spain has a long history of global interaction through trade, cultural exchange, and migration, which has ingrained a sense of global belonging in its identity. The interplay between its strong family-oriented culture and its openness to the world positions Spain as a country where local and global connectedness coexist harmoniously. This highlights the importance of familial and communal structures in fostering not only local integration but also a broader, global perspective.
In the last decade, Spain has become a significant hub for immigrants in Europe, with approximately 15% of its population now foreign-born, according to the Instituto Nacional de Estadística (2023).44 These migrants, hailing from regions like Morocco, Romania, Latin America, and sub-Saharan Africa, enrich Spain’s cultural and economic fabric. The government’s inclusive policies and legal frameworks have played a pivotal role in this process. Pathways to citizenship are accessible, with naturalization possible after 10 years of legal residence, or just two years for nationals of Ibero American countries and Andorra, the Philippines, Equatorial Guinea, and Sephardic Jews. Spain’s provision of universal healthcare, free education up to age 16, and robust social welfare ensures that migrants can integrate into society with dignity and support. Additionally, language and cultural orientation programs offered at local levels empower migrants to participate fully in Spanish society.
Economically, migrants contribute significantly to Spain’s labor market, filling vital roles in agriculture, construction, healthcare, and hospitality. Data from the Spanish Ministry of Labor (2022) highlights that immigrants make up 20% of the workforce in these industries, addressing labor shortages and driving growth.45 Similarly to Portugal, immigrants helped Spain to tackle economic issues after the 2008 global crisis.46 Beyond their economic impact, multicultural events celebrating this diversity help foster mutual understanding and social cohesion. However, challenges such as housing discrimination and bureaucratic hurdles remain, creating barriers that need to be addressed to ensure full inclusion.47
Spain has also implemented the Golden Visa program 48 which grants residency to non-EU nationals who make significant investments, such as purchasing real estate worth €500,000 or more. This program has attracted affluent migrants, boosting the real estate market and driving foreign investment. However, the Golden Visa program is scheduled to end in April 2025, raising questions about the future of such investment-driven migration policies.49 While the program’s closure may mark the end of an era, it remains to be seen whether Spain will introduce alternative measures to sustain economic growth and attract global talent.
Germany’s Strategic Advancements: Climbing to Third Place
Germany’s rise to third place in the QoL dimension of the Global Passport Index reflects the country’s strategic focus on enhancing its infrastructure, green initiatives, and economic stability. Over the past decade, Germany has invested heavily in modernizing its transportation systems, including high-speed rail networks and urban mobility projects, making cities more accessible and environmentally friendly.50 These improvements not only boost the overall quality of life for residents but also make Germany a highly attractive destination for expatriates and global talent.
Germany’s commitment to green initiatives has also played a pivotal role in its ascension. As a leader in renewable energy adoption, the country has prioritized sustainability through investments in wind, solar, and green hydrogen technologies. Policies encouraging energy efficiency and eco-friendly urban planning have contributed to cleaner cities and healthier living conditions. These measures align with Germany’s broader climate goals, reinforcing its reputation as an environmentally conscious nation.
Despite these advancements, Germany’s economy faced significant challenges throughout 2024, marked by a persistent recession and structural issues that hindered growth. The Bundesbank projected a slight decline of 0.2% in real GDP for the year, indicating a sluggish economic environment. The manufacturing sector experienced a notable downturn, with the HCOB Germany Manufacturing PMI dropping to 42.5 in December 2024, signaling continued contraction. This decline was attributed to decreased output and new orders, particularly affecting intermediate and investment goods. Employment in manufacturing also saw reductions, marking the 18th consecutive month of job losses, though at a decelerated pace. High energy costs, wage stagnation, and a shrinking workforce further exacerbated economic difficulties.
Looking ahead, modest economic recovery is anticipated in 2025, with projected GDP growth of 0.7%. This outlook is supported by expected increases in real wages, which could boost domestic demand. Nonetheless, structural challenges and global economic uncertainties continue to pose risks to Germany’s economic stability. These developments suggest that while Germany remains a leader in quality of life metrics, continued economic reforms and stability efforts will be essential to sustain this progress in the coming years.
Japan’s Rendition: A Recovery Story in Quality of Life
Japan’s recovery in the quality of life dimension, climbing from 34th place in 2021 to 17th in 2025, demonstrates the nation’s resilience and strategic focus on improving work-life balance policies. Although the country faced a slight drop to 20th in recent years due to challenges posed by its aging demographics, its long-term trajectory showcases significant progress. Japan’s emphasis on addressing overwork and fostering better work-life harmony has been a transformative factor in its quality of life ranking.
The Japanese government has introduced several reforms to reduce excessive working hours and improve work-life balance, significantly impacting the nation’s quality of life. The 2018 Work Style Reform Law imposed strict limits on overtime, with monthly and annual caps, and mandated rigorous tracking of working hours.51 Initiatives like the 2019 Premium Friday encouraged early leave to promote leisure, and amendments to the Labor Standards Act enforced stricter penalties for overtime violations.52 Flexible work arrangements, including remote work and pilot programs for four-day workweeks, further alleviated the intense work culture.
These measures aim to combat the cultural norm of “karoshi,” or death by overwork, and prioritize employee health and productivity. By fostering a healthier work environment, Japan has created a more sustainable and attractive lifestyle for its residents and expatriates.
Furthermore, Japan’s advancements in healthcare and social support systems have also bolstered its quality of life metrics. As the nation grapples with an aging population, it has invested in cutting-edge healthcare technologies and long-term care facilities, ensuring that senior citizens receive quality support. Additionally, the government has incentivized family-friendly policies, such as subsidized childcare and generous parental leave, to address declining birth rates and support young families. Notably, the Kishida administration launched the “Children’s Future Strategy” in 2023, which aims to raise Japan’s fertility rate by increasing children-related spending by 3.6 trillion yen (approximately 0.6 percent of GDP) per year by 2028.53 This strategy also includes plans to double the budget allocation for the Children’s Agency by the early 2030s, promote co-parenting, and expand childcare facilities to better support child-rearing households.
The Decline of Quality of Life in the United States: Challenges, Causes, and Paths Forward
The United States, once a consistent leader in global quality of life rankings, has experienced a significant decline in recent years. In the 2021 Global QoL Index, the U.S. ranked 23rd. By 2024, it had fallen to 38th place. This drop of 15 places underscores the mounting challenges facing American society.
Factors such as healthcare accessibility, income inequality, mental health, social cohesion, education, housing affordability, environmental issues, infrastructure deficiencies, security, geopolitical instability, work-life balance, digital inequality, immigration challenges, and access to justice all contribute to this decline. Public perception data further highlights the extent of these problems and the growing discontent among U.S. citizens.
The U.S. healthcare system remains a primary driver of dissatisfaction and declining quality of life. Despite spending 17.8% of its GDP on healthcare54, the highest globally, over 30 million Americans remain uninsured.55 The average healthcare cost per capita is $12,31856, yet outcomes lag behind other developed nations. Life expectancy has fallen to 77 years, due to chronic diseases, opioid addiction, and the impacts of the COVID-19 pandemic.57
Public sentiment reflects this dissatisfaction. According to a Gallup poll, only 48% of Americans are satisfied with the availability of affordable healthcare.58 The Kaiser Family Foundation found that 60% of adults worry about unexpected medical bills, and 50% say healthcare costs have caused them to delay or skip treatments.59 The combination of high healthcare costs, lack of insurance coverage, and delayed treatments has exacerbated mental health problems across the U.S., as financial stress and unmet medical needs contribute to anxiety, depression, and a diminished overall quality of life.
Additionally, the mental health crisis in the United States has worsened, exacerbated by the COVID-19 pandemic, economic instability, and social fragmentation. The National Alliance on Mental Illness reports that 1 in 5 adults experiences a mental health condition each year60, yet 55% of those affected do not receive treatment.61 Suicide rates have risen by 36% since 2000.62
Public perception reflects this crisis. According to an American Psychiatry Association survey, 81% of adults believe that mental health is a major issue in the U.S., and 87% say the mental health crisis is getting worse.63 Undoubtedly, barriers to accessing care, such as high costs and lack of providers contribute to such high numbers.
Income inequality is among the highest in the developed world. The Gini coefficient stands at 0.4164, indicating significant wealth disparities. The top 1% of earners control over 30% of the nation’s wealth, while the bottom 50% own just 2%.65 Wage stagnation, coupled with rising living costs, exacerbates financial insecurity, particularly for marginalized communities. Furthermore, a Pew Research Center (PRC) survey found that 65% of Americans believe the gap between rich and poor is widening, and 57% think the economy favours the wealthy and 44% of adults say they struggle to pay bills each month.66
These factors have significantly eroded social cohesion in the United States. Political polarization, racial tensions, and declining trust in institutions have further fragmented the social fabric. According to the Edelman Trust Baromete, trust in the government has dropped to 42%, down from 53% in 2020.67 Contentious issues such as gun control, immigration, and racial justice continue to deepen divisions, impeding collective progress and fostering societal discontent.
In 2022 another PRC survey revealed that 64% of Americans believe the country is more divided than ever. Additionally, 60% say they have little confidence that the government will address the nation’s challenges effectively.68 This loss of social trust contributes to societal fragmentation and disillusionment.
Access to quality education and affordable housing remains uneven in the United States. Public school funding relies heavily on local property taxes, leading to significant disparities between wealthy and low-income districts.69 The National Assessment of Educational Progress reported that students in low-income areas are two years behind their peers in affluent districts.70
When it comes to property market, according to a Harvard Joint Center for Housing Studies survey, 70% of Americans believe housing affordability is a serious problem.71
Climate change and infrastructure decay also undermine quality of life. The U.S. experienced 23 climate-related disasters in 2023, each causing damages over $1 billion.72 Wildfires, hurricanes, and droughts displace communities and strain public resources.
Personal security is another growing concern for many Americans. The U.S. has the highest rate of gun ownership in the world, with 120.5 guns per 100 residents.73 In 2022, there were 644 mass shootings and 659 in 2023.74 Connected to security and guns onership in the U.S. a PRC poll found, in 2023, that 60% of Americans worry about gun violence daily, and 51% support stricter gun laws.75
On the global stage, geopolitical instability also affects national confidence. Tensions with China and Russia, the war in Ukraine, and cybersecurity threats create anxiety. According to the Chicago Council on Global Affairs, 58% of Americans believe the country’s global influence is waning, and 65% worry about potential international conflicts.76
The United States’ decline in global quality of life rankings from 23rd in 2021 to 38th in 2024 underscores the pressing need to address systemic challenges that have eroded well-being and societal cohesion. Issues such as inaccessible healthcare, income inequality, and mental health crises, coupled with educational and housing disparities, environmental concerns, and social polarization, reflect a fragmented social fabric in urgent need of repair. These interconnected problems highlight the necessity for a unified approach to policy reform that prioritizes equity, accessibility, and sustainability.
Reversing this trend requires bold and comprehensive reforms across key areas. Expanding universal healthcare, ensuring economic equity through progressive taxation and fair wages, and providing affordable mental health services are foundational steps. Equitable funding for education and housing, coupled with climate action and infrastructure modernization, can rebuild trust and foster collective progress. Addressing public safety concerns, including gun control and crime prevention, alongside renewed diplomatic engagement, will further enhance stability at home and abroad. As President Franklin D. Roosevelt reminded us, true progress lies in uplifting those who have too little. By embracing this vision, the United States can restore its global standing and offer its citizens a future rooted in equity, well-being, and hope.
Switzerland and New Zealand decline in Quality of Life: An Analysis of Rising Costs, Housing, and Societal Challenges
Switzerland, renowned for its prosperity and high living standards, has also experienced a sharp decline in global quality of life rankings. Once ranked 30th in the 2022 Global QoL Index, Switzerland fell to 46th by 2024, reflecting mounting pressures on its residents. Central to this decline are the rising cost of living and persistent housing affordability issues, which disproportionately affect middle and lower-income households. These economic challenges are reshaping the daily lives of Swiss residents and eroding the country’s traditionally high standard of living.
Switzerland is consistently ranked as one of the most expensive countries in the world, second only to Bermuda and Monaco according to the Numbeo Cost of Living Index.77 The Swiss Consumer Price Index (CPI) reported a 2.8% increase in prices in 2023 (Swiss National Bank, 2023).78
A 2023 Gfs.bern survey revealed that 67% of Swiss residents identify rising living costs as their primary concern.79 Middle and lower-income households bear the brunt of this burden, with wages failing to keep pace with inflation. For these households, the increasing cost of necessities creates a sense of economic insecurity, particularly as other expenses, such as housing, take up a growing share of income. This financial strain has forced many to cut back on discretionary spending, leading to reduced quality of life and growing dissatisfaction across the population.
Housing affordability has emerged as one of Switzerland’s most critical issues, deeply affecting its quality of life rankings. For many residents, homeownership is out of reach, with only 37% of Swiss households owning their homes compared to a European average of 70% (Eurostat, 2023).80 This disparity reflects the high costs associated with purchasing property, compounded by stringent mortgage regulations requiring a 20% down payment.
The rental market is equally challenging. A survey by the Swiss Tenants’ Association (2023) found that 60% of renters spend more than 30% of their income on housing costs, surpassing the threshold for financial strain.81 This shortage of affordable housing has led to longer commutes and overcrowded urban areas, further diminishing the quality of life for residents. Families and young professionals face particularly acute challenges, as limited affordable options force many to settle for less desirable living conditions or relocate to areas with fewer economic opportunities.
The ripple effects of rising living costs and housing affordability extend far beyond individual financial strain. Economic disparities between urban and rural areas have grown, with urban centers seeing significantly higher costs but also higher concentrations of job opportunities. This urban-rural divide contributes to societal fragmentation and undermines social cohesion. Additionally, high housing costs deter young professionals and families from settling in Switzerland, posing long-term risks to workforce sustainability and economic growth.
Addressing these challenges requires comprehensive policy interventions. Affordable housing initiatives, such as increasing the housing supply through incentivizing construction and implementing rent controls, are critical. Policies that prioritize equitable access to housing can help alleviate the financial burden on residents while fostering a more inclusive society. Similarly, measures to stabilize living costs, such as subsidies for essential goods and services, could provide immediate relief to struggling households.
As for New Zealand, the country has experienced a notable decline in global rankings, dropping from seventh place in earlier assessments to 16th in 2025. Factors contributing to this decline include housing affordability issues, economic vulnerabilities, and infrastructural strains. Housing affordability remains a significant concern. Despite recent declines in property prices, affordability challenges persist due to elevated mortgage rates and high rents.82 The time required to save for a deposit has improved since the COVID-19 pandemic; however, potential homebuyers and owners still face substantial obstacles. Additionally, the housing market is expected to stabilize in 2025, but new construction projects may be hindered by high material costs and labor shortages, potentially exacerbating the housing supply issue.83
Economically, New Zealand’s reliance on sectors susceptible to global fluctuations, such as tourism and agriculture, has exposed vulnerabilities. The COVID-19 pandemic highlighted these weaknesses, with border closures and supply chain disruptions significantly impacting the economy.84 Although there are efforts to boost tourism as a means of economic recovery, challenges remain, including rising unemployment and decreasing retail sales. Furthermore, the country is dealing with high inflation and interest rates, creating uncertainty in its economic future.
Infrastructural challenges also play a role in the declining quality of life. Urban centers are grappling with congestion and overstretched services, partly due to population growth and inadequate infrastructure development. The government’s ongoing efforts to increase housing supply could help alleviate some housing affordability issues in the medium to long term, but immediate challenges persist.
New Zealand, despite its recent challenges related to high costs of living and housing affordability, remains a major player when it comes to quality of life. Its natural beauty, strong social systems, and progressive values continue to make it an attractive destination for both residents and visitors. However, the drop in global rankings highlights the urgent need for the government to address these pressing issues.
Conclusion
The 2024 Global Passport Index underscores that quality of life is more than just a measure of economic wealth; it is a comprehensive reflection of the health, security, and overall well-being experienced by a nation’s residents. This subindex takes into account crucial factors such as universal healthcare access, quality education, economic stability, social integration, mental health services, and work-life balance—elements that collectively shape the everyday lives of citizens and residents. The rankings show that countries excelling in these dimensions not only provide their people with the tools for a healthy and fulfilling life but also offer greater opportunities for personal and professional growth. The QoL dimension recognizes that the strength of a passport is not merely defined by mobility but by the ability of a nation to provide its citizens with security, support, and a high standard of living within its borders.
In 2024, the GPI reveals distinct regional patterns in QoL performance. Nordic countries such as Sweden, Finland, Norway and Denmark continue to set the global standard due to their robust welfare systems, accessible healthcare, gender equality, and emphasis on mental health and work-life balance. These nations invest heavily in public services and promote a culture of balance and inclusivity, leading to consistently high rankings. In Southern Europe, Portugal and Spain show significant improvements in their QoL scores, driven by economic recovery, enhanced public services, and the benefits of favorable climates, Mediterranean diets, and strong social cohesion. Conversely, the United States has seen a marked decline, reflecting systemic issues such as healthcare accessibility, rising income inequality, mental health crises, and work-life imbalance. These trends highlight the critical role of holistic social policies and inclusive governance in sustaining and improving quality of life, ultimately influencing a passport’s value beyond mere travel freedom.
Countries that have climbed in QoL rankings, such as Sweden, Finland, and Denmark, exemplify how strategic investments in social welfare and sustainability can enhance residents’ well-being. These nations should continue fostering innovation in healthcare, mental health services, and work-life balance while addressing emerging challenges like climate change and aging populations. For nations experiencing a decline, like the United States and Switzerland, immediate focus on policy reform is essential. The U.S. could benefit from addressing healthcare affordability, income inequality, and mental health infrastructure, while Switzerland should prioritize alleviating housing costs and living expenses. Learning from successful models, these countries can rebuild their QoL metrics by adopting inclusive and forward-thinking policies.
The GPI’s emphasis on Quality of Life highlights the interconnected nature of a nation’s social, economic, and environmental policies. For countries to climb in these rankings and sustain long-term growth, a balanced approach—addressing both systemic challenges and future opportunities—is key. By prioritizing well-being, inclusivity, and sustainability, nations can not only improve their rankings but also enrich the lives of their citizens.