Austria came in at #3.
Population: 8.2 million
Life Expectancy: 79 years
GDP Per Capita: $32,700
"Another Alpine hotbed of happiness, Austria also boasts beautiful scenery and a surprisingly rich cultural scene. Like many of the world's happiest countries, it boasts a strong health-care system, as evidenced by the long average life expectancy of its citizens. Strict environmental regulations are starting to pay dividends," says Oskar Hinteregger, of the Austrian National Tourist Office. He credits the country's happy mood to its relaxed atmosphere, efficient public transport system, and general cleanliness. Austria does have some poverty, though: nearly 6%.
"The frustrations of modern life, and the anxieties of the age, seem to be much less significant compared to the health, financial, and educational needs in other parts of the world."