The report by the Sustainable Development Solutions Network was released on Wednesday to coincide with the UN International Day of Happiness.
Bangladesh had come in at 115th place in last year’s rankings.
Among South Asian countries, Bangladesh’s 2019 ranking was in the middle of the pack, below Pakistan (67), Bhutan (95) and Nepal (100), but above Sri Lanka (130), India (140) and Afghanistan (154).
According to a comparison between data from 2005-08 and 2016-18, Bangladesh was among 42 countries that experienced a significant decrease in happiness in this period.
Finland topped the ranking for the second year in a row, followed by Denmark, Norway, Iceland and the Netherlands.
The lowest ranked countries were South Sudan, the Central African Republic, Afghanistan, Tanzania and Rwanda.