Data and society

Best countries to live in by the HDI: how the index works and what it does not measure

Every “best countries to live in” list ends up citing the HDI, and almost none explains what the number actually measures. A country can top the index and still be expensive, cold, bureaucratic or far from everything that matters to you. This guide opens the calculation: the three ingredients of the HDI, how Iceland reaches 0.972, why Brazil sits at 84th, and what the index leaves out. When you want to go beyond the numbers and test your lifestyle, the [which country should you live in quiz](quiz:quiz-pais-para-morar) completes the picture.

J-Kit6 min readIntermediate
  • HDI
  • Human development
  • UNDP
  • Living abroad
  • Country ranking

Key takeaways

  • The HDI combines life expectancy, years of schooling and income per capita in a geometric mean; in the 2025 report (2023 data), Iceland leads with 0.972.
  • Income enters through a logarithm, so doubling Brazil’s income lifts its HDI from 0.786 to about 0.819, while one more year of life expectancy takes it to about 0.790.
  • The HDI does not measure inequality, emissions, safety, climate, language, cost of living or visa access; UNDP publishes versions adjusted for inequality and planetary pressure.
  • Use the HDI as a starting filter, then compare what weighs on your own life.

What the HDI measures, in one sentence

The Human Development Index is published by the United Nations Development Programme (UNDP). According to the index page, it summarises three dimensions: health, education and standard of living.

Health
Life expectancy at birth.
Education
Mean years of schooling for adults aged 25 and over, and expected years of schooling for children of school-entering age.
Standard of living
Gross national income (GNI) per capita, in 2021 purchasing-power-parity dollars, used through the logarithm.

The final value falls between 0 and 1. UNDP describes the HDI as “the geometric mean of normalized indices for each of the three dimensions”.

How the value is calculated, with Brazil as the example

Each dimension becomes an index between 0 and 1 by comparing the country’s value with a floor and a ceiling. UNDP’s calculation workbook uses 20 and 85 years for life expectancy, 0 and 18 for expected years of schooling, 0 and 15 for mean years, and 100 and 75,000 dollars for income.

I_saude = (EV - 20) / (85 - 20) I_educ = ( AEE/18 + AME/15 ) / 2 I_renda = ( ln(RNB) - ln(100) ) / ( ln(75000) - ln(100) ) IDH = ( I_saude x I_educ x I_renda ) ^ (1/3)
EV
Life expectancy at birth, in years
AEE
Expected years of schooling
AME
Mean years of schooling
RNB
Gross national income per capita, in 2021 PPP US$
The four HDI calculations

Worked example with Brazil, using UNDP’s 2023 data: life expectancy 75.848 years, expected schooling 15.79, mean schooling 8.43 and income of 18,011 dollars.

  1. Health(75.848 - 20) / 65 = 0.859.
  2. Education(15.79/18 + 8.43/15) / 2 = (0.877 + 0.562) / 2 = 0.720.
  3. Income(ln 18,011 - ln 100) / (ln 75,000 - ln 100) = 0.785.
  4. Geometric mean(0.859 x 0.720 x 0.785) to the power 1/3 = 0.786, the value UNDP publishes.

Why a geometric mean? Because it punishes imbalance: a country cannot offset weak education with income alone. And why the logarithm on income? Because each extra dollar weighs less for someone already wealthy.

See the effect on Brazil. Doubling income lifts the HDI to about 0.819, and one more year of life expectancy lifts it to about 0.790. These numbers are my own calculations on the formula above, not UNDP projections.

The 2023 ranking in ten countries

The ranking runs from 1 to 193. The values below come from the Human Development Report 2025 time-series file, downloaded on 2 November 2026, and were rounded. Norway and Switzerland tie for 2nd.

HDI for 2023 and its components (UNDP data)
RankCountryHDILife expectancyExpected / mean years of schoolingIncome per capita (2021 PPP US$)
1Iceland0.97282.718.9 / 13.969,117
2Norway0.97083.318.8 / 13.1112,710
2Switzerland0.97084.016.7 / 13.981,949
4Denmark0.96281.918.7 / 13.076,008
7Australia0.95883.920.7 / 12.958,277
23Japan0.92584.715.5 / 12.747,775
40Portugal0.89082.417.5 / 9.741,064
84Brazil0.78675.815.8 / 8.418,011
130India0.68572.013.0 / 6.99,047
188Niger0.41961.28.3 / 1.41,590

Look at Norway and Switzerland: identical HDI, different profiles. Norway has much higher income; Switzerland has longer life expectancy. The single number hides distinct combinations.

What the HDI does not measure

The HDI is a national average. It does not say how income is distributed, how much carbon the country emits, whether you will be welcome, whether you speak the language or whether you can get a visa.

UNDP itself publishes two adjustments. The IHDI discounts inequality within each dimension; the PHDI accounts for planetary pressure, with indices for CO2 emissions and material footprint.

HDI, inequality-adjusted HDI (IHDI) and planetary-pressures-adjusted HDI (PHDI), 2023
CountryHDIIHDIPHDI
Norway0.9700.9090.723
United States0.9380.8320.686
Portugal0.8900.7950.797
United Arab Emirates0.9400.8660.585
Qatar0.886no data0.276
Brazil0.7860.5940.702

The reading is direct. In Brazil, the gap between the HDI (0.786) and the IHDI (0.594) is the largest in the table and points to high inequality. In Qatar, the PHDI of 0.276 reflects the environmental footprint, despite an HDI of 0.886.

How to use the HDI to choose where to live

  1. Filter by HDIUse the ranking to discard countries whose basics (health, schooling, income) do not meet the minimum you need.
  2. Look at the componentsTwo countries with the same HDI can differ in income and longevity. Pick the component that weighs most for you.
  3. Check the adjustmentsCompare HDI, IHDI and PHDI to see inequality and environmental pressure.
  4. Add what the index cannot seeLanguage, climate, cost of living, support network, visa and career decide the day to day. The which country should you live in quiz helps you rank those preferences.

To read rankings critically, it also helps to understand why correlation is not causation and how the normal distribution works.

Frequently asked questions

Which country has the highest HDI?
In the Human Development Report 2025, with 2023 data, Iceland leads with 0.972, followed by Norway and Switzerland, tied at 0.970.
Where does Brazil rank on the HDI?
In 2023, Brazil ranks 84th with an HDI of 0.786, in the “high” human development group under UNDP’s classification.
Does the HDI measure happiness or quality of life?
No. It measures three dimensions: health, education and income. Happiness, safety, climate and cost of living are outside the index.
Why does the HDI use a geometric mean?
Because it stops a strength from fully offsetting a weakness: a country with high income and low education loses more than it would under a simple average.
Can I reuse UNDP’s data?
The terms of use on UNDP’s site say the materials are under Creative Commons Attribution 3.0 IGO: you must give credit, link the licence and indicate changes.

The HDI is a good filter, not a verdict. It summarises health, education and income in a geometric mean, and so it hides inequality, environmental footprint and everything that depends on your lifestyle. Start from the ranking, open the components, and then compare what the index cannot see.

Sources & references

  1. UNDP, Human Development Index (definition of the three dimensions)
  2. UNDP, terms of use (CC BY 3.0 IGO licence)
  3. UNDP, HDR25 Composite indices complete time series (CSV, 2023 data)
  4. UNDP, HDR25 Calculating indices (workbook with calculations and goalposts)
  5. UNDP, HDR25 Composite indices metadata