Norway claimed the No. 1 spot as the world's happiest country, according to a United Nations report, which described the United States as "a story of reduced happiness."
The Scandinavian country was shadowed by Nordic neighbours Denmark and Iceland, as well as Switzerland, in the World Happiness Report released on Monday.
The top four countries scored high on factors that are key to happiness such as "caring, freedom, generosity, honesty, health, income and good governance," according to the report.
Last year, Denmark claimed the top spot.
Rounding off the list of the top 10 happiest countries were Finland, the Netherlands, Canada, New Zealand, Australia, and Sweden.
Oil and gas rich Norway was cited as having managed "toproduce its oil slowly, and investing the proceeds for the future rather than spending them in the present."
Norway has thereby avoided "the boom and bust cycle of many other resource-rich economies," the report said.
The United States was ranked 14th.
In 2007, the US was ranked third among Organisation for Economic Co-operation and Development (OECD) countries, and it came in at 19th place in 2016, the report said, citing "declining social support and increased corruption" as factors.
Trailing the World Happiness list were Rwanda, Burundi, Tanzania and the Central African Republic.
The report was released in New York in conjunction with the World Happiness Day.
The list has been used by the UN since 2012 when Bhutan secured support for a proposal to recognize happiness as a universal goal and as a guiding principle for public policies.