The ranking matches 140 cities against each other, with the Swedish capital finishing well inside the top ten.

Maria Kylberg, a PR manager for the Stockholm Business Region, is buzzing with the news.

“We are always happy and proud when international rankings such as the Economist put Stockholm in high positions,” she told The Local.

“Our goal to be a world class city and to be Europe’s most sustainable growth region is starting to pay off and international confirmation is very valuable.”

In the ranking, Hong Kong took the first place and Amsterdam and Osaka trailed close behind. Meanwhile, Tehran, Nairobi and Lusaka took the bottom three spots.

Click here for a gallery of the top ten cities to live in on earth, according to The Economist.

Criteria for the ranking include population density, air quality, connectivity, green space and pollution concentration. Special mention went to Stockholm for its inner city green space – with over 40 percent of the Swedish capital being composed of parks, lakes and hiking trails.

This green space is “the very soul” of Stockholm, according to Kylberg.

“Closeness to nature is one of Stockholm’s strongest points since it makes it possible for people to get a real work/life balance. Something that I think will be more and more important for coming generations,” she said.

Cultural and natural assets are also included in the criteria, with the ranking taking note of UNESCO world heritage sites in the area Google Satellite imagery to map how much greenery featured in each city.

Kylberg admits that the quality of life in Stockholm is the overwhelming draw, and was quick to point out that the Financial Times had rated the Stockholm region as European Region of the Future 2012-13.

As no other Scandinavian cities made the top ten this year, the Stockhom Business Region may indeed take this as confirmation of their controversial slogan they launched in March.

“This is simply Stockholm,” she told The Local.

“The Capital of Scandinavia.”

Oliver Gee

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