Iceland ranks first in the 2025 Human Development Report, with a Human Development Index (HDI) value of 0.972, while Switzerland and Norway share second place with 0.970 each. These countries have consistently remained at the top of the list, with minimal changes from year to year, showing that a very high level of human development is durable and difficult to undermine. They stand out for strong healthcare systems, reflected in life expectancy; quality education, measured by the average years of schooling among people over 25 and the expected years of schooling for children entering school; and high per capita income, calculated using Gross National Income (GNI) per person. The United States ranks 17th with a score of 0.938, behind Denmark, Germany and Canada.
North Macedonia ranks 68th with an HDI of 0.815 and an average life expectancy of 77.4 years. Adults have completed an average of 10.2 years of schooling, while younger generations are expected to complete about 14.8 years of education. Gross national income per capita, measured at purchasing power parity, stands at $22,128. These figures place the country in the very high human development category. The main purpose of this methodology is to show that human development depends not only on economic growth, but also on how that growth directly affects citizens’ lives.
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The Human Development Index assesses three fundamental dimensions: health, through life expectancy at birth; education, through average and expected years of schooling; and living standards, using Gross National Income per capita adjusted for purchasing power. Values range from 0 to 1, with higher scores indicating greater human development. Countries are divided into four categories: very high (0.800 and above), high (0.700–0.799), medium (0.550–0.699) and low (below 0.550).
Among countries in the region, Slovenia leads in 21st place with an index of 0.931, followed by Greece in 34th with 0.908, Croatia in 41st with 0.889, Montenegro in 48th with 0.862, Bulgaria in 55th with 0.845, Serbia in 62nd with 0.833, Albania in 71st with 0.810, and Bosnia and Herzegovina in 74th with an index of 77.9.
At the same time, because of the methodology used for this index (GDP per capita, education indicators and life expectancy), many economists question its reliability, although no more accurate alternative currently exists. Critics argue that wealthier countries automatically have higher GDP per capita, enabling their residents to live longer in healthier conditions and giving them better access to healthcare and education than people in poorer countries.
Nevertheless, many countries and territories with relatively low consumption, such as Singapore, Japan and Hong Kong, rank very well compared with European countries, where consumption is significantly higher. The Human Development Index was devised by the United Nations in 1990 to measure countries’ development and is now considered the most important indicator for assessing social well-being.
