Though it is in no way a perfect country, Canada is undoubtedly one of the best places to live in the world. And according to a new report, it ranks number one in the world when it comes to quality of life.

The 2020 Best Countries Report, a ranking and analysis project by U.S. News & World Report, BAV Group and the Wharton School of the University of Pennsylvania, evaluates the perceptions of 73 nations across a range of categories. 

The report consists of a large overall list which ranks the best countries in the world and several additional, more specific lists. 

While Canada was ranked as the second best country in the world on the overall list, it beat out every other country in the quality of life category for the second year in a row. 

Canada received a score of 10 in this category due to the evaluation of several attributes: economic stability, the job market, affordability, safety, political stability, whether it's family friendly, the quality of the public education system, the quality of the public health system and the level of income equality. 

And while the country only received 0.8 out of 10 for affordability and 7.7 out of 10 for income equality, Canada received a score of 9.2 or higher in every other category. 

Other countries that did well on the list include Denmark, Sweden, Norway and Australia. 

Here are the 10 best countries in the world for quality of life, according to the annual Best Countries ranking.

1. Canada
2. Denmark
3. Sweden
4. Norway
5. Australia
6. Netherlands
7. Switzerland
8. New Zealand
9. Finland
10. Germany

"Beyond the essential ideas of broad access to food and housing, to quality education and health care, to employment that will sustain us, quality of life may also include intangibles such as job security, political stability, individual freedom and environmental quality," the report notes.

"What social scientists do agree on is that material wealth is not the most important factor in assessing a life lived well. The results of the Quality of Life sub-ranking survey reflect that sensibility."