New Zealand has the best education system in the world, according to a new study.

The annual Legatum Prosperity Index has ranked New Zealand as the fifth most prosperous country in the world overall, and first in the education category.

It was ranked second for its governance; second for personal freedom; fourth for social capital; 13th for entrepreneurship and opportunity, 13th for safety and security; 20th for health; and 27th for economy.

Norway topped the rankings, followed by Denmark and Sweden

Australia just out-ranked New Zealand in fourth position.

Advertisement

The United States dropped out of the top 10 for the first time to 12th position.