According to a recent survey, Norway has topped the list of the world's most prosperous countries followed by Denmark and Sweden.
The U.S., however, has dropped out of the Legatum Prosperity Index's top ten for the first time to 12th position, reports the Daily Mail.
Scandinavian countries have continued to dominate the top of the global index, which takes measurements from across eight categories: economy, education, entrepreneurship and opportunity, governance, health, personal freedom, safety and security and social capital.
In Europe, overall prosperity has risen, with the Netherlands, Ireland and Germany climbing the rankings into eighth, tenth and 14th position.
However, more than two thirds of European countries have seen their Economy score fall in the index since 2009 as economic woes sweep across the region.
A new generation of Asian 'Tiger Cub' countries has emerged, with Vietnam, Thailand, Malaysia and Indonesia all performing well. They are edging closer to Hong Kong, Singapore and Taiwan, which all sit in the top 25 countries.
"The Legatum Prosperity Index allows us to paint a comprehensive picture of what makes a country truly successful. It encompassing traditional measures of material wealth, as well as capturing citizens' sense of wellbeing - from how safe they feel, to their perceived personal freedom. GDP alone can never offer a complete view of prosperity," said Jeffrey Gedmin, president and chief executive of the Legatum Institute.
"We believe that by measuring the quality of education, healthcare, social capital and opportunity, our Prosperity Index gives the clearest view of how countries are prospering today and how they are likely to prosper in the future," he added.