Why Singapore, Thailand are among the world’s ‘happiest’ economies

The 2025 Hanke's Annual Misery Index (HAMI), compiled by applied economics professor Steve Hanke of Johns Hopkins University, measures the 'economic temperature' of 178 nations by combining unemployment, inflation, and bank-lending rates, then subtracting real GDP growth. This year's results place Singapore and Thailand among the world's least miserable economies, alongside other Southeast Asian nations that outperform larger economies. Hanke describes Southeast Asia as one of the 'healthiest economic neighbourhoods' globally, citing a combination of low inflation, steady employment, manageable borrowing costs, and income growth.

This favorable environment leaves households feeling less economic strain compared to regions with higher inflation or unemployment. The index serves as a 'thermometer pressed against the body of the economy,' according to Hanke. For professionals and investors, the ranking highlights Southeast Asia's resilience and stability, offering attractive conditions for business operations and personal finance. The region's ability to maintain balanced macroeconomic indicators while many advanced economies struggle makes it a standout in the global economic landscape.