The Prosperity Index by the Legatum Institute conducted the survey across 110 countries revealing the UK was behind in terms of economy and well-being.
The UK came in at number 13 on the list, lagging behind thanks to poor health and education services, although some areas in the economy remain average.
Senior fellow at the Legatum Institute, Dr Ashley Lenihan said: “Despite the recession, the UK continues to perform well on a number of important economic indicators.”
As the figures come in while the government announces the extent of the public spending cuts, it is not good news for Britain.
Dr Lenihan added: “There are signs of weakness in some areas of the UK. Measurements of healthcare, domestic security, and quality of education are the areas in which the UK ranks lowest.”
The group said that although the results were gloomy, the banking crisis was a big factor in the country’s performance as public confidence in financial institutions faltered.