30 Countries with the Highest Quality of Life Heading into 2024
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In this article, we will look into the 30 countries with the highest quality of life heading into 2024. If you want to skip our detailed analysis you can go directly to the 5 Countries with the Highest Quality of Life Heading into 2024.
Global Quality of Life: An Analysis
Quality of life is a broad concept that covers the well-being of people in a region, encompassing the aspects of social security, economic liberty, health, education, environment, equal rights, economic well-being, and effective governance, among other factors. According to McKinsey and Company, the McKinsey Institute of Health (MIH) believes that in the coming decades, we could add nearly 6 years of life per person on average. The MIH is of the view that the world has the capacity and technology for innovation in all aspects of life, ultimately lifting life expectancy and overall quality of life. Several countries have experienced substantial health improvements over a decade. For instance, Countries including Bolivia, Ireland, and Thailand gained 3.8, 3.0, and 4.5 years in their life expectancies.
In 2017, The Pew Research Center surveyed 38 countries to analyze people's perception of quality of life in comparison to what it was 50 years ago. It concluded that countries with higher education and progressing economies are more likely to experience a better quality of life. More than 50% of countries surveyed reported a better quality of life with respect to literacy rates and economy.
According to the OECD report, "How's Life? 2020", the quality of life has significantly improved over the past decade. In 2020, the OECD countries reported higher disposable income and higher employment rates. The quality of life has drastically improved over the past decade, with stronger social safety nets than before. The improvement is evident in the relatively high $28,000 average annual household income of the member countries and a median $162,000 household wealth, affordable living costs, high employment rates, economic conditions, and reduced gender inequalities.
Europe: The Region with the Highest Quality of Life
Europe is home to some of the countries with the highest quality of life. According to a survey by the Eurobarometer, European countries report an average life satisfaction of 7.2 out of 10. Some of the countries reporting the highest satisfaction include Austria, Ireland, Finland, Sweden, Denmark, Switzerland, and the Netherlands, among others. Bulgaria, Croatia, Greece, and Hungary are some of the countries that reported the lowest satisfaction with the quality of life in 2021.
Europe is a region with a robust economy, reporting a GDP of $25.44 trillion and a GDP growth of 1%. The economic growth in the region is one of the key factors that enhance the quality of life. A good economy results in higher employment rates, high average incomes, increased financial security, and increased investments in public services and infrastructure by the government.
Major Players in the European Market
The European market is dominated by major companies in sectors including healthcare, technology, and energy among others. Some of the companies leading the market include AstraZeneca PLC (NASDAQ:AZN), TotalEnergies SE (NYSE:TTE), and SAP SE (NYSE:SAP).
AstraZeneca PLC (NASDAQ:AZN) is a top multinational healthcare company in Europe. On November 20, the company launched Evinova, a digital healthcare solutions company. Evinova will provide customized solutions, trial designs, and consulting services to customers. Its offerings also include globally-scaled digital products and services, including solutions for clinical trial design and delivery, digital remote patient monitoring, and digital therapeutics. The company has also entered into agreements with Paraexel, a leading clinical research and pharmaceutical company, and Fortrea, a leading contract research organization, to provide health solutions to a wider clientele.
TotalEnergies SE (NYSE:TTE) is a leading name in the energy sector in Europe. On November 21, the company announced the launch of its new in-depot electric truck charging service. The charging service will be available starting from 2024 in Europe. The company will install charging points along Europe's road corridors. TotalEnergies SE (NYSE:TTE) is committed to reducing emissions to net zero. The new charging service is part of the company's goal of making transportation sustainable.
SAP SE (NYSE:SAP) is a leading European multinational leading the market. On November 23, the company announced its partnership with Infosys Limited (NYSE:INFY) to develop a carbon footprint management tool for businesses, called Sustainable S&OP and Carbon Footprint Management. The solution was developed using SAP Integrated Business Planning (SAP IBP) for Supply Chain, SAP S/4HANA, SAP Business Technology Platform (SAP BTP), SAP Integration Suite, and SAP Sustainability Footprint Management. The carbon footprint management solution will calculate carbon emissions across a company's procurement, production, and distribution processes based on GHG emissions protocols and potential global warming factors. The solution will help companies cut down their carbon emissions and also identify, track, predict, and refine the emission numbers.
Now that we have talked about the quality of life across the globe and discussed the major stocks in the dominant region with the highest quality of life, let's have a look at the 30 countries with the highest quality of life heading into 2024.
30 Countries with the Highest Quality of Life Heading into 2024
Methodology
To rank the countries with the highest quality of life heading into 2024, we utilized three metrics: Human Development Index (HDI), Economic Freedom Index (EFI), and Government Effectiveness rating.
HDI estimates factors such as life expectancy, education, and a decent standard of living. We obtained the most recent data available for HDI of countries from UNDP. The second metric for our rating is EFI obtained from the Heritage Foundation. EFI is an annual rating that measures the degree of economic freedom in a country, utilizing a total of 10 indicators. Then, the final metric we utilized is the Government Effectiveness rating, which we obtained from the World Bank's World Governance Indicator Database. The Government Effectiveness rating measures the quality of public services, the degree to which the government can deliver on its promises, and the quality of its bureaucracy. The metric is also a key determinant in measuring economic growth.
To identify the countries with the highest quality of life heading into 2024, we first shortlisted the top 60 countries based on their HDI as of 2021. We prioritized HDI as our initial screening tool as it provides us with an insight into human development, taking into account the overall life expectancy and amenities available to the residents of a country, and is related to the quality of life directly as stated by the WHO. Then, we utilized our other two metrics to narrow down our list further. We allocated equal weights to both our indicators and calculated a final score out of 100. Then, we refined our list to the top 30 countries based on their final score and ranked them in ascending order of the calculated score.
In our previous article about the top Asian countries with the best quality of life, we did not include Taiwan in our list as we obtained our HDI data from UNDP which does not contain data for Taiwan, since it is not a UN member. However, upon further consideration, we have decided to include Taiwan among the 30 Countries with the highest quality of life heading into 2024 as it is one of the top countries in Asia with a high living standard. Taiwan boasts a robust economy and a strong health and education system. It is a hub for technological innovation in Asia. Taiwan reports high government effectiveness and is ranked 4 overall in terms of economic freedom. So to include Taiwan in our list, we obtained its HDI from Taiwan's Statistical Bureau as of 2021.
Note: We have not included Israel in our list due to the current Israel-Palestine war and the current political and civil unrest in the region. A country's quality of life depends upon various aspects of human development, which also include social cohesion and equity. Although Israel has made significant progress in different aspects of human development including economic prosperity and innovation, the concept of quality of life is broader than that and extends beyond these aspects of human development. The ongoing conflict has created a deep divide between the two countries resulting in social violence, insecurity, and discrimination. Hence, we have excluded Israel from our list.
30 Countries with the Highest Quality of Life Heading into 2024
30. Cyprus
Human Development Index (2021): 0.896
Government Effectiveness (2022): 75.47
Economic Freedom Index (2023): 72.30
Insider Monkey Rating: 73.88 out of 100
Cyprus is ranked among the countries with the highest quality of life. Cyprus reported an HDI of 0.896 as of 2021. According to the World Bank, Cyprus reported a Government Effectiveness rating of 75.47%. The Economic Freedom Index rating of the county is 72.30 as of 2023.
29. Latvia
Human Development Index (2021): 0.863
Government Effectiveness (2022): 75.00
Economic Freedom Index (2023): 72.80
Insider Monkey Rating: 73.90 out of 100
Latvia is ranked 29th on our list, reporting an HDI of 0.863 as of 2021. According to the World Bank, Latvia reported a Government Effectiveness rating of 75%. The Economic Freedom Index rating of the county is 72.8 as of 2023.
28. Slovenia
Human Development Index (2021): 0.918
Government Effectiveness (2022): 80.66
Economic Freedom Index (2023): 68.50
Insider Monkey Rating: 74.58 out of 100
According to the UNDP, Slovenia reported an HDI of 0.918 as of 2021. According to the World Bank, Slovenia reported a Government Effectiveness rating of 80.66%. The Economic Freedom Index rating of the county is 68.50 as of 2023.
27. Portugal
Human Development Index (2021): 0.866
Government Effectiveness (2022): 80.19
Economic Freedom Index (2023): 69.50
Insider Monkey Rating: 74.84 out of 100
Portugal is ranked among the countries with the highest quality of life. Portugal reported an HDI of 0.866 as of 2021. According to the World Bank, Portugal reported a Government Effectiveness rating of 80.19%. The Economic Freedom Index rating of the county is 69.50 as of 2023.
26. Qatar
Human Development Index (2021): 0.855
Government Effectiveness (2022): 82.55
Economic Freedom Index (2023): 68.60
Insider Monkey Rating: 75.57 out of 100
As of 2021, Qatar reported an HDI of 0.855. According to the World Bank, Qatar reported a Government Effectiveness rating of 82.55%. The Economic Freedom Index rating of the county is 68.60 and is counted among the moderately free countries, as of 2023.
25. Lithuania
Human Development Index (2021): 0.875
Government Effectiveness (2022): 79.72
Economic Freedom Index (2023): 72.20
Insider Monkey Rating: 75.95 out of 100
Lithuania is ranked 25th on our list, reporting an HDI of 0.875 as of 2021. According to the World Bank, Lithuania reported a Government Effectiveness rating of 79.72%. The Economic Freedom Index rating of the county is 72.20 as of 2023.
24. Belgium
Human Development Index (2021): 0.937
Government Effectiveness (2022): 84.91
Economic Freedom Index (2023): 67.10
Insider Monkey Rating: 76.00 out of 100
Ranked 24th on our list, Belgium reported an HDI of 0.937 as of 2021. According to the World Bank, Belgium reported a Government Effectiveness rating of 84.91%. The Economic Freedom Index rating of the county is 67.10 as of 2023.
AstraZeneca PLC (NASDAQ:AZN), TotalEnergies SE (NYSE:TTE), and SAP SE (NYSE:SAP) are some of the major stocks in the European market.
23. United Kingdom
Human Development Index (2021): 0.929
Government Effectiveness (2022): 85.85
Economic Freedom Index (2023): 69.90
Insider Monkey Rating: 77.87 out of 100
The United Kingdom is ranked 23rd on our list, reporting an HDI of 0.929 as of 2021. According to the World Bank, the United Kingdom reported a Government Effectiveness rating of 85.85%. The Economic Freedom Index rating of the county is 69.90 as of 2023.
22. Brunei
Human Development Index (2021): 0.829
Government Effectiveness (2022): 91.04
Economic Freedom Index (2023): 65.70
Insider Monkey Rating: 78.37 out of 100
Brunei is a small island country located in Southeast Asia. It is ranked among the countries with the highest quality of life heading into 2024, reporting an HDI of 0.829 as of 2021. According to the World Bank, Brunei reported a Government Effectiveness rating of 91.04%. The Economic Freedom Index rating of the county is 65.70 as of 2023.
21. United States
Human Development Index (2021): 0.829
Government Effectiveness (2022): 91.04
Economic Freedom Index (2023): 65.70
Insider Monkey Rating: 78.37 out of 100
The United States is ranked 21st on our list, reporting an HDI of 0.829 as of 2021. According to the World Bank, the US reported a Government Effectiveness rating of 91.04%. The Economic Freedom Index rating of the county is 65.70 as of 2023.
20. United Arab Emirates
Human Development Index (2021): 0.911
Government Effectiveness (2022): 88.68
Economic Freedom Index (2023): 70.90
Insider Monkey Rating: 79.79 out of 100
The United Arab Emirates reported an HDI of 0.911 as of 2021. According to the World Bank, the United Arab Emirates reported a Government Effectiveness rating of 88.68%. The Economic Freedom Index rating of the county is 70.90 as of 2023. It is ranked 20th on our list.
19. Germany
Human Development Index (2021): 0.942
Government Effectiveness (2022): 88.21
Economic Freedom Index (2023): 73.70
Insider Monkey Rating: 80.95 out of 100
Germany is ranked 19th on our list with an HDI of 0.942 as of 2021. According to the World Bank, Germany reported a Government Effectiveness rating of 88.21%. The Economic Freedom Index rating of the county is 73.70 as of 2023.
18. Austria
Human Development Index (2021): 0.916
Government Effectiveness (2022): 91.51
Economic Freedom Index (2023): 71.10
Insider Monkey Rating: 81.30 out of 100
Austria is ranked 18th on our list, reporting an HDI of 0.916 as of 2021. According to the World Bank, Austria reported a Government Effectiveness rating of 91.51%. The Economic Freedom Index rating of the county is 71.10 as of 2023.
17. South Korea
Human Development Index (2021): 0.925
Government Effectiveness (2022): 90.09
Economic Freedom Index (2023): 73.70
Insider Monkey Rating: 81.89 out of 100
South Korea is ranked 17th on our list, reporting an HDI of 0.925 as of 2021. According to the World Bank, South Korea reported a Government Effectiveness rating of 90.09%. The Economic Freedom Index rating of the county is 73.70 as of 2023.
16. Japan
Human Development Index (2021): 0.925
Government Effectiveness (2022): 96.23
Economic Freedom Index (2023): 69.30
Insider Monkey Rating: 82.76 out of 100
Japan is ranked 16th on our list, reporting an HDI of 0.925 as of 2021. According to the World Bank, Japan reported a Government Effectiveness rating of 96.23. The Economic Freedom Index rating of the county is 69.30 as of 2023.
15. Iceland
Human Development Index (2021): 0.959
Government Effectiveness (2022): 93.87
Economic Freedom Index (2023): 72.20
Insider Monkey Rating: 83.03 out of 100
As of 2021, Iceland reported an HDI of 0.959. According to the World Bank, Iceland reported a Government Effectiveness rating of 93.87%. The Economic Freedom Index rating of the county is 72.20 as of 2023.
14. Australia
Human Development Index (2021): 0.951
Government Effectiveness (2022): 92.92
Economic Freedom Index (2023): 74.80
Insider Monkey Rating: 83.86 out of 100
Australia reported an HDI of 0.951 as of 2021. According to the World Bank, Australia reported a Government Effectiveness rating of 92.92%. The Economic Freedom Index rating of the county is 74.80 as of 2023.
13. Canada
Human Development Index (2021): 0.936
Government Effectiveness (2022): 94.34
Economic Freedom Index (2023): 73.70
Insider Monkey Rating: 84.02 out of 100
Canada is ranked among the 30 countries with the highest quality of life. Canada reported an HDI of 0.936 as of 2021. According to the World Bank, Canada reported a Government Effectiveness rating of 94.34%. The Economic Freedom Index rating of the county is 73.70 as of 2023.
12. New Zealand
Human Development Index (2021): 0.937
Government Effectiveness (2022): 89.15
Economic Freedom Index (2023): 78.90
Insider Monkey Rating: 84.02 out of 100
New Zealand is ranked 12th on our list with an HDI of 0.937 as of 2021. According to the World Bank, New Zealand reported a Government Effectiveness rating of 89.15%. The Economic Freedom Index rating of the county is 78.90 as of 2023.
11. Estonia
Human Development Index (2021): 0.890
Government Effectiveness (2022): 89.62
Economic Freedom Index (2023): 78.60
Insider Monkey Rating: 84.11 out of 100
Estonia is ranked among the countries with the highest quality of life heading into 2024. Estonia reported an HDI of 0.890 as of 2021. According to the World Bank, Estonia reported a Government Effectiveness rating of 89.62%. The Economic Freedom Index rating of the county is 78.60 as of 2023.
10. Taiwan
Human Development Index (2021): 0.926
Government Effectiveness (2022): 90.57
Economic Freedom Index (2023): 80.70
Insider Monkey Rating: 85.65 out of 100
Taiwan is ranked 9th list. According to Taiwan's Statistical Bureau reported an HDI of 0.926 as of 2021. According to the World Bank, Sweden reported a Government Effectiveness rating of 94.81%. The Economic Freedom Index rating of the county is 77.50 as of 2023.
9. Sweden
Human Development Index (2021): 0.947
Government Effectiveness (2022): 94.81
Economic Freedom Index (2023): 77.50
Insider Monkey Rating: 86.16 out of 100
Sweden is ranked 9th on our list, reporting an HDI of 0.947 as of 2021. According to the World Bank, Sweden reported a Government Effectiveness rating of 94.81%. The Economic Freedom Index rating of the county is 77.50 as of 2023.
8. Netherlands
Human Development Index (2021): 0.941
Government Effectiveness (2022): 95.28
Economic Freedom Index (2023): 78.00
Insider Monkey Rating: 86.64 out of 100
The Netherlands is ranked 8th on our list, reporting an HDI of 0.941 as of 2021. According to the World Bank, the Netherlands reported a Government Effectiveness rating of 95.28%. The Economic Freedom Index rating of the county is 78 as of 2023.
7. Finland
Human Development Index (2021): 0.940
Government Effectiveness (2022): 96.70
Economic Freedom Index (2023): 77.10
Insider Monkey Rating: 86.90 out of 100
Finland is ranked among the top countries with the highest quality of life. As of 2021, Finland reported an HDI of 0.940. According to the World Bank, Finland reported a Government Effectiveness rating of 96.70%. The Economic Freedom Index rating of the county is 77.10 as of 2023.
6. Norway
Human Development Index (2021): 0.961
Government Effectiveness (2022): 98.11
Economic Freedom Index (2023): 76.90
Insider Monkey Rating: 87.50 out of 100
Norway is ranked among the countries with the highest quality of life heading into 2024, reporting an HDI of 0.961 as of 2021. According to the World Bank, Norway reported a Government Effectiveness rating of 98.11%. The Economic Freedom Index rating of the county is 76.90 as of 2023.
Investors looking to increase their exposure to the European market can research stocks including AstraZeneca PLC (NASDAQ:AZN), TotalEnergies SE (NYSE:TTE), and SAP SE (NYSE:SAP).
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